-----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, NKCVp3wi1zkE4Zkg10OhjX0FTyRQPBDolm1nttka2odC1bOGgXA69a1nn8XuMozX vR+MzjY4kLIPO8gMw3R28g== 0000755908-98-000001.txt : 19980304 0000755908-98-000001.hdr.sgml : 19980304 ACCESSION NUMBER: 0000755908-98-000001 CONFORMED SUBMISSION TYPE: 10KSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980303 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSOLIDATED CAPITAL PROPERTIES VI CENTRAL INDEX KEY: 0000755908 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 942940204 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10KSB SEC ACT: SEC FILE NUMBER: 000-14099 FILM NUMBER: 98556165 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: POST OFFICE BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 2147020027 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 10KSB 1 FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D) FORM 10-KSB [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required] For the fiscal year ended December 31, 1997 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required] For the transition period.........to......... Commission file number 0-14099 CONSOLIDATED CAPITAL PROPERTIES VI (Name of small business issuer in its charter) California 94-2940204 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Insignia Financial Plaza, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) (864) 239-1000 Issuer's telephone number Securities registered under Section 12(b) of the Exchange Act: None Securities registered under Section 12(g) of the Exchange Act: Units of Limited Partnership Interest (Title of class) 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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. [X] State issuer's revenues for its most recent fiscal year. $6,598,000. State the aggregate market value of the voting partnership interests held by non-affiliates computed by reference to the price at which the partnership interests were sold, or the average bid and asked prices of such partnership interests, as of a specified date within the past 60 days. Market value information for the Registrant's partnership interests is not available. Should a trading market develop for these interests, it is the General Partner's belief that the aggregate market value of the voting partnership interests would not exceed $25,000,000. PART I ITEM 1. DESCRIPTION OF BUSINESS Consolidated Capital Properties VI (the "Partnership" or "Registrant") was organized on May 23, 1984, as a limited partnership under the California Uniform Limited Partnership Act. On December 7, 1984, the Partnership registered with the Securities and Exchange Commission ("SEC") under the Securities Act of 1933 (File No. 2-93900) and commenced a public offering for sale of $50,000,000 of Units. The Units represent equity interests in the Partnership and entitle the holders thereof to participate in certain allocations and distributions of the Partnership. The Partnership subsequently filed a Form 8-A Registration Statement with the SEC and registered under the Securities Exchange Act of 1934 (File No. 0-14099) on December 23, 1985. The sale of Units closed on December 6, 1985, with 181,808 Units sold at $250 each, or gross proceeds of approximately $45,500,000 to the Partnership. By the end of fiscal 1987, approximately 51% of the proceeds raised was invested in seven properties and a 75% interest in a joint venture with an affiliated partnership which acquired one property. Of the remaining 49%, 11% was required for organizational and offering expenses, sales commissions and acquisition fees, and 38% was retained in Partnership reserves for project improvements and working capital as required by the Partnership Agreement (herein so called). The General Partner of the Partnership is ConCap Equities, Inc., a Delaware corporation (the "General Partner" or "CEI"). The principal place of business for the Partnership and for the General Partner is One Insignia Financial Plaza, Greenville, South Carolina 29602. The Partnership's primary business and only industry segment is real estate related operations. The Partnership was formed to acquire, own, operate and ultimately dispose of income-producing real properties for the benefit of its partners. At December 31, 1997, the Partnership owns one property as described in "Item 2 - Description of Property." Previously, the Partnership disposed of seven properties. Reserves, consisting of cash and cash equivalents, tenant security deposits, investments, and reserves for capital improvements and contingencies totaling approximately $2,676,000 are more than the reserve requirements of approximately $2,070,000 at December 31, 1997. The excess in reserves primarily results from the sale of Celina Plaza Apartments. (See "Note F" of the financial statements). The working capital requirement must be met prior to any consideration for distributions to the partners. A distribution totaling $500,000 was made subsequent to year-end from surplus funds from the sale of Celina Plaza Apartments. (See "Note E" of the financial statements.) See "Item 6 - Management's Discussion and Analysis or Plan of Operations" for a discussion of the Partnership's liquidity and capital resources. The real estate business is highly competitive. The Registrant's real property investments are subject to competition from similar types of properties in the vicinities in which they are located and the Partnership is not a significant factor in its industry. In addition, various limited partnerships have been formed by related parties to engage in business which may be competitive with the Registrant. The Registrant has no employees. Management and administrative services are performed by affiliates of Insignia Financial Group, Inc. ("Insignia"), an affiliate of the General Partner. The property manager is responsible for the day-to-day operations of each property. The General Partner has also selected an affiliate of Insignia to provide real estate advisory and asset management services to the Partnership. As advisor, such affiliate provides all partnership accounting and administrative services, investment management, and supervisory services over property management and leasing. For a further discussion of property and partnership management, see "Item 12 - Certain Relationships and Related Transactions". Upon the Partnership's formation in 1984, Consolidated Capital Equities Corporation ("CCEC"), a Colorado corporation, was the corporate general partner and Consolidated Capital Group II ("CCG"), a California general partnership, was the non-corporate general partner. In 1988, through a series of transactions, Southmark Corporation ("Southmark") acquired controlling interest in CCEC. In December 1988, CCEC filed for reorganization under Chapter 11 of the United States Bankruptcy Code. In 1990, as part of CCEC's reorganization plan, CEI acquired CCEC's general partner interests in the Partnership and in 15 other affiliated public limited partnerships (the "Affiliated Partnerships") and CEI replaced CCEC as managing general partner in all 16 partnerships. The selection of CEI as the sole managing general partner was approved by a majority of the limited partners in the Partnership and in each of the Affiliated Partnerships pursuant to a solicitation of the Limited Partners dated August 10, 1990. As part of this solicitation, the Limited Partners also approved an amendment to the Partnership Agreement limiting changes of control of the Partnership and approved conversion of the general partner interest of the non-corporate general partner, CCG, to that of a special limited partner ("Special Limited Partner") without voting and other rights of a limited partner except for the economic interest previously held as a general partner. Pursuant to this amendment to the Partnership Agreement, the non-corporate general partner interest of CCG was converted to that of a Special Limited Partner and CEI became the sole general partner of the Partnership on December 31, 1991. Prior to December 1994, all of CEI's outstanding stock was owned by GII Realty, Inc. In December 1994, the parent of GII Realty, Inc., entered into a transaction (the "Insignia Transaction") in which an affiliate of Insignia acquired an option (exercisable in whole or in part from time to time) to purchase all of the stock of GII Realty, Inc. and, pursuant to a partial exercise of such option, acquired 50.5% of that stock. As a part of the Insignia Transaction, the Insignia affiliate also acquired all of the outstanding stock of Partnership Services, Inc., an asset management entity, and Insignia acquired all of the outstanding stock of Coventry Properties, Inc., a property management entity. In addition, confidentiality, non-competition, and standstill arrangements were entered into between certain of the parties. Those arrangements, among other things, prohibit GII Realty's former sole shareholder from purchasing Partnership Units for a period of three years. On October 24, 1995, the Insignia affiliate exercised the remaining portion of its option to purchase all of the remaining outstanding capital stock of GII Realty, Inc. As of December 31, 1997, Insignia Properties Trust, an affiliate of Insignia, owned 100% of the outstanding stock of CEI. As of December 31, 1997, Insignia Properties, L.P., an affiliate of Insignia, owned 41,576 units of the Partnership. ITEM 2. DESCRIPTION OF PROPERTY The Partnership originally acquired seven properties of which two were sold, two were conveyed to lenders, two of three phases in a property were conveyed to the lender and the remaining phase was sold, and one property was foreclosed on, in fiscal years prior to 1994. The Partnership also originally acquired a 75% interest in a real estate joint venture. In April 1994, the Partnership purchased the remaining 25% interest in the real estate joint venture. In the fourth quarter of 1997, the Partnership sold Celina Plaza Apartments, located in El Paso, Texas, to an unaffiliated third party. (See "Note F" of the financial statements.) As of December 31, 1997, the Partnership owns one property as noted below: Date of Property Purchase Type of Ownership Use Colony of Springdale Apartments 02/20/87 Fee ownership subject Apartment - Springdale, Ohio to first mortgage. 261 units SCHEDULE OF PROPERTY: (dollar amounts in thousands) Carrying Accumulated Federal Property Value Depreciation Rate Method Tax Basis Colony of Springdale $ 9,866 $ 3,641 5-30 years S/L $ 5,558 See "Note A" of the Financial Statements included in "Item 7" for a description of the Partnership's depreciation policy. SCHEDULE OF MORTGAGE: (dollar amounts in thousands) Principal Principal Balance At Stated Balance December 31, Interest Maturity Due At Property 1997 Rate Date Maturity Colony of Springdale 1st mortgage $ 4,407 9.50% 05/01 $ 4,152 SCHEDULE OF RENTAL RATES AND OCCUPANCY: Average Annual Average Rental Rates Occupancy Property 1997 1996 1997 1996 (per unit) (per unit) Colony of Springdale $6,517 $6,270 88% 91% As noted under "Item 1. Description of Business," the real estate industry is highly competitive. The Partnership's property is subject to competition from other residential apartment complexes in the area. The General Partner believes that all of the property is adequately insured. The property's lease terms are for one year or less and no tenant leases 10% or more of the available rental space. The decrease in occupancy at the Colony of Springdale is due to continued adherence to stricter tenant qualification procedures and an increased number of evictions as part of an effort to improve the tenant base. Ongoing property improvements, resulting in improved consumer appeal, continue to positively impact rental rates. SCHEDULE OF REAL ESTATE TAXES AND RATES: (Dollar amounts in thousands) Real estate taxes and the tax rate in 1997 for the property was: 1997 1997 Taxes Rate Colony of Springdale $ 113 4.42% ITEM 3. LEGAL PROCEEDINGS The Registrant is unaware of any pending or outstanding litigation that is not of a routine nature. The General Partner of the Registrant believes that all such pending or outstanding litigation will be resolved without a material adverse effect upon the business, financial condition, or operations of the Partnership. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS During the year ended December 31, 1997, no matters were submitted to a vote of the Unitholders through the solicitation of proxies or otherwise. PART II ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED SECURITY HOLDER MATTERS No established public trading market for Partnership Units exists nor is one expected to develop. As of December 31, 1997, the Partnership had 3,740 holders of Limited Partnership Units. There were no cash distributions to the Limited Partners during the years ended December 31, 1997 and 1996. A $500,000 distribution was declared subsequent to December 31, 1997, to the Limited Partners from surplus funds from the sale of Celina Plaza Apartments. ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION This item should be read in conjunction with the financial statements and other items contained elsewhere in this report. RESULTS OF OPERATIONS The Partnership realized net income of approximately $3,359,000 for the year ended December 31, 1997, compared to a net loss of approximately $553,000 for the year ended December 31, 1996. (See "Note I" of the financial statements for a reconciliation of these amounts to the Partnership's federal taxable income (loss).) The increase in net income for the year ended December 31, 1997, is primarily attributable to the gain of approximately $3,660,000 realized on the sale of Celina Plaza as discussed below. On October 20, 1997, the Partnership sold Celina Plaza Apartments, located in El Paso, Texas, to an unaffiliated party, The Vandenburg Organization, a Texas corporation. The sales price of the property was $6,600,000 and the sale resulted in net proceeds of approximately $6,456,000, after payment of closing costs. The net proceeds were used to pay accrued taxes and to pay-off the mortgage debt secured by this property. Excess proceeds after such payments amounted to approximately $779,000 to the Partnership. With respect to the remaining investment property owned by the Partnership, net income increased slightly due primarily to a decrease in operating expenses, the majority of which was attributable to decreased maintenance expenses. Maintenance expense decreased at the Colony of Springdale Apartments due to various interior and exterior projects which were completed in 1996 with no comparable expenditures in 1997. Also, increased cleaning, interior painting and contract repair costs were incurred in 1996 due to increased move-outs. Operating expense also decreased due to water-saving devices installed during 1997 at the Colony of Springdale Apartments which lowered water and sewer expenses. Partially offsetting the decrease in operating expenses was a decrease in rental income at the Colony of Springdale Apartments. This decrease was due to lower occupancy from enforcement of stricter tenant qualification procedures and increased evictions resulting from stricter enforcement of collection policies. There was a related increase in advertising expense (included in operating expenses) due to higher concessions being offered at the Colony of Springdale Apartments in an effort to increase occupancy. Included in operating expenses for the year ended December 31, 1997, is approximately $15,000 of major repairs and maintenance comprised primarily of window coverings and repairs to one unit at Celina Plaza Apartments due to minor fire damage, which was not covered by insurance. For the year ended December 31, 1996, approximately $88,000 of repairs and maintenance comprised primarily of parking lot repairs, exterior building improvements, major landscaping, swimming pool repairs and window coverings is included in operating expense. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of its investment property to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening market conditions, there is no guarantee that the General Partner will be able to sustain such a plan. LIQUIDITY AND CAPITAL RESOURCES At December 31, 1997, the Partnership held cash and cash equivalents of approximately $1,949,000 compared to approximately $1,478,000 at December 31, 1996. For the year ended December 31, 1997, net cash increased approximately $471,000. Net cash provided by operating activities decreased due to an increase in receivables and deposits and a decrease in accounts payable and other liabilities. The increase in receivables and deposits resulted primarily from increases in escrows for taxes. The decrease in accounts payable was due to the timing of payments while other liabilities decreased due to the payment of accrued interest on Celina Plaza Apartments. Net cash provided by investing activities resulted primarily from proceeds received in the sale of Celina Plaza Apartments. Net cash used in financing activities increased primarily due to the repayment of the mortgage debt from the sale of Celina Plaza Apartments. Also, principal payments increased due to additional payments totaling approximately $170,000 being paid on the mortgage note secured by Celina Plaza Apartments in order to obtain extensions on the indebtedness, which matured in July 1997, prior to the sale of the property on October 20, 1997. (See "Note F" of the financial statements.) The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. The mortgage indebtedness of approximately $4,407,000 has a maturity date of May 2001, at which time the property will either be sold or the mortgage refinanced. Celina Plaza Apartments was sold on October 20, 1997, for $6,600,000, and the sale resulted in net proceeds of approximately $6,456,000, after payment of closing costs (See "Note F" of the financial statements). No cash distributions were declared or paid during the year ended 1997 or 1996. A distribution totaling $500,000 from surplus funds resulting from the sale of Celina Plaza Apartments was declared to the Limited Partners subsequent to December 31, 1997. Future cash distributions will depend on the levels of net cash generated from operations, capital expenditure requirements, property sales and the availability of cash reserves. YEAR 2000 The Partnership is dependent upon the General Partner and Insignia for management and administrative services. Insignia has completed an assessment and will have to modify or replace portions of its software so that its computer systems will function properly with respect to dates in the year 2000 and thereafter. The project is estimated to be completed not later than December 31, 1998, which is prior to any anticipated impact on its operating systems. The General Partner believes that with modifications to existing software and conversions to new software, the Year 2000 Issue will not pose significant operational problems for its computer systems. However, if such modifications and conversions are not made, or are not completed timely, the Year 2000 Issue could have a material impact on the operations of the Partnership. OTHER Certain items discussed in this annual report may constitute forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 (the "Reform Act") and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Partnership to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this annual report. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. ITEM 7. FINANCIAL STATEMENTS CONSOLIDATED CAPITAL PROPERTIES VI LIST OF FINANCIAL STATEMENTS Report of Ernst & Young LLP, Independent Auditors Consolidated Balance Sheet - December 31, 1997 Consolidated Statements of Operations - Years ended December 31, 1997 and 1996 Consolidated Statements of Changes in Partners' Capital (Deficit) - Years ended December 31, 1997 and 1996 Consolidated Statements of Cash Flows - Years ended December 31, 1997 and 1996 Notes to Consolidated Financial Statements Report of Ernst & Young LLP, Independent Auditors The Partners Consolidated Capital Properties VI We have audited the accompanying consolidated balance sheet of Consolidated Capital Properties VI as of December 31, 1997, and the related consolidated statements of operations, changes in partners' capital (deficit) and cash flows for each of the two years in the period ended December 31, 1997. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Partnership's management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Consolidated Capital Properties VI at December 31, 1997, and the consolidated results of its operations and its cash flows for each of the two years in the period ended December 31, 1997, in conformity with generally accepted accounting principles. /s/ ERNST & YOUNG LLP Greenville, South Carolina January 23, 1998 CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED BALANCE SHEET December 31, 1997 (in thousands, except unit data) Assets Cash and cash equivalents $ 1,949 Investments 302 Receivables and deposits 349 Restricted escrows 90 Other assets 105 Investment properties (Notes G and H): Land $ 916 Buildings and personal property 8,950 9,866 Less accumulated depreciation (3,641) 6,225 $ 9,020 Liabilities and Partners' Capital (Deficit) Liabilities Accounts payable $ 60 Tenant security deposits 55 Accrued property taxes 118 Other liabilities 71 Mortgage note payable (Note G) 4,407 Partners' Capital (Deficit) General partner $ 1 Special limited partners (52) Limited partners (181,808 units issued and 181,300 outstanding) 4,360 4,309 $ 9,020 See Accompanying Notes to Consolidated Financial Statements CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except unit data) Years Ended December 31, 1997 1996 Revenues: Rental income $2,703 $3,068 Other income 235 246 Gain on sale of property 3,660 -- Total revenues 6,598 3,314 Expenses: Operating 1,502 1,807 General and administrative 168 179 Depreciation 660 713 Interest 680 890 Property taxes 229 278 Total expenses 3,239 3,867 Net income (loss) $3,359 $ (553) Net income (loss) allocated to general partner (0.2%) $ 7 $ (1) Net income (loss) allocated to limited partners (99.8%) 3,352 (552) $3,359 $ (553) Net income (loss) per limited partnership unit $18.49 $(3.04) See Accompanying Notes to Consolidated Financial Statements CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) Years Ended December 31, 1997 and 1996 (in thousands, except unit data)
Limited Special Partnership General Limited Limited Units Partner Partners Partners Total Original capital contributions 181,808 $ 1 $ -- $45,452 $45,453 Partners' capital (deficit) at December 31, 1995 181,300 $ (5) $ (70) $ 1,578 $ 1,503 Amortization of timing difference -- -- 9 (9) -- Net loss for the year ended December 31, 1996 -- (1) -- (552) (553) Partners' capital (deficit) at December 31, 1996 181,300 (6) (61) 1,017 950 Amortization of timing difference -- -- 9 (9) -- Net income for the year ended December 31, 1997 -- 7 -- 3,352 3,359 Partners' capital (deficit) at December 31, 1997 181,300 $ 1 $ (52) $ 4,360 $ 4,309 See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED CAPITAL PROPERTIES VI CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended December 31, 1997 1996 Cash flows from operating activities: Net income (loss) $ 3,359 $ (553) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 660 713 Amortization of loan costs and discounts 126 229 Gain on sale of property (3,660) -- Loss on disposition of property -- 31 Change in accounts: Receivables and deposits (114) 214 Other assets (9) 15 Accounts payable (143) 27 Tenant security deposit liabilities (33) (7) Accrued taxes 5 1 Other liabilities (157) (56) Net cash provided by operating activities 34 614 Cash flows from investing activities: Property improvements and replacements (167) (404) Proceeds from sale of property 6,456 -- Proceeds from sale of investments -- 85 Dividends received from investments 3 -- Net (increase) decrease in restricted escrows (22) 70 Net cash provided by (used in) investing activities 6,270 (249) Cash flows from financing activities: Payments on mortgage notes payable (371) (198) Repayment of mortgage notes payable (5,462) -- Net cash used in financing activities (5,833) (198) Net increase in cash and cash equivalents 471 167 Cash and cash equivalents at beginning of period 1,478 1,311 Cash and cash equivalents at end of period $ 1,949 $ 1,478 Supplemental disclosure of cash flow information: Cash paid for interest $ 698 $ 661 See Accompanying Notes to Consolidated Financial Statements CONSOLIDATED CAPITAL PROPERTIES VI NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 1997 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Consolidated Capital Properties VI, a California limited partnership (the "Partnership" or "Registrant"), was formed on May 23, 1984, to acquire and operate commercial and residential properties. As of December 31, 1997, the Partnership owns one residential property located near a major urban area in the United States. At the time of the Partnership's formation, Consolidated Capital Equities Corporation ("CCEC"), a Colorado corporation, was the corporate general partner and Consolidated Capital Group II ("CCG"), a California general partnership, was the non-corporate general partner. In 1988, through a series of transactions, Southmark Corporation ("Southmark") acquired controlling interest in CCEC. In December 1988, CCEC filed for reorganization under Chapter 11 of the United States Bankruptcy Code. In 1990, as part of CCEC's reorganization plan, ConCap Equities, Inc. (the "General Partner" or "CEI") acquired CCEC's general partner interests in the Partnership and in 15 other affiliated public limited partnerships (the "Affiliated Partnerships") and CEI replaced CCEC as managing general partner in all 16 partnerships. The selection of CEI as the sole managing general partner was approved by a majority of the Limited Partners in the Partnership and in each of the Affiliated Partnerships pursuant to a solicitation of the Limited Partners dated August 10, 1990. As part of this solicitation, the Limited Partners also approved an amendment to the Partnership Agreement to limit changes of control of the Partnership. Prior to December 1994, all of CEI's outstanding stock was owned by GII Realty, Inc. In December 1994, the parent of GII Realty, Inc., entered into a transaction (the "Insignia Transaction") in which an affiliate of Insignia Financial Group, Inc. ("Insignia"), acquired an option (exercisable in whole or in part from time to time) to purchase all of the stock of GII Realty, Inc. and, pursuant to a partial exercise of such option, acquired 50.5% of that stock. As a part of the Insignia Transaction, the Insignia affiliate also acquired all of the outstanding stock of Partnership Services, Inc., an asset management entity and Insignia acquired all of the outstanding stock of Coventry Properties, Inc., a property management entity. In addition, confidentiality, non-competition, and standstill arrangements were entered into between certain of the parties. Those arrangements, among other things, prohibit GII Realty's former sole shareholder from purchasing Partnership Units for a period of three years. On October 24, 1995, the Insignia affiliate exercised the remaining portion of its option to purchase all of the remaining outstanding capital stock of GII Realty, Inc. As of December 31, 1997, Insignia Properties Trust, an affiliate of Insignia, owned 100% of the outstanding stock of CEI. At December 31, 1997, Insignia Properties L.P., an affiliate of Insignia, owned 41,576 Units of the Partnership. On December 31, 1991, the non-corporate general partner interest of CCG was converted to that of a Special Limited Partner, as more fully described in "Note D" and CEI became the sole General Partner. Consolidation The Partnership's financial statements include the accounts of Colony of Springdale Associates, Ltd. ("Colony Associates"), which holds fee title to the Colony of Springdale Apartments. The results of its operations are included in the Partnership's financial statements. All intercompany transactions between the Partnership and Colony Associates have been eliminated. Investment Properties Investment properties are stated at cost. Acquisition fees are capitalized as a cost of real estate. In accordance with "Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of", the Partnership records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. For the years ended December 31, 1997 and 1996, no adjustments for impairment of value were necessary. Depreciation Buildings and improvements are depreciated using the straight-line method over the estimated useful lives of the assets, ranging from 5 to 30 years. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and in banks, demand deposits, money market funds, and certificates of deposit with original maturities less than 90 days. At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits. Tenant Security Deposits The Partnership requires security deposits from lessees for the duration of the lease and such deposits are included in receivables and deposits. Deposits are refunded when the tenant vacates, provided the tenant has not damaged its space and is current on its rental payments. Loan Costs Loan costs are included in other assets and are being amortized on a straight- line basis over the life of the loans. As of December 31, 1997, the Partnership had a total of approximately $176,000 of capitalized loan costs with related accumulated amortization of approximately $91,000. Reclassifications Certain reclassifications have been made to the 1996 information to conform to the 1997 presentation. Investments: The Partnership values investment securities in accordance with "Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities." Investments, consisting primarily of U.S. Treasury notes with original maturities more than ninety days, are considered to be held-to-maturity securities. As the Investments' fair values approximate their cost, any unrealized gains or losses are immaterial and therefore have not been recorded in the accompanying financial statements. The cost of Investments sold is determined using the specific identification method. The Investments mature as follows (dollar amounts in thousands): Description Cost Maturity U.S. Treasury Notes $ 299 February 1998 Equity Securities 3 N/A $ 302 Fair Value "Statement of Financial Accounting Standards ("SFAS") No. 107, Disclosures about Fair Value of Financial Instruments", as amended by "SFAS No. 119, Disclosures about Derivative Financial Instruments and Fair Value of Financial Instruments", requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. Fair value is defined in the SFAS as the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Partnership believes that the carrying amount of its financial instruments (except for long term debt) approximates their fair value due to the short term maturity of these instruments. The fair value of the Partnership's long term debt, after discounting the scheduled loan payments to maturity, approximates its carrying balance. Rental Income The Partnership leases its residential property under short-term operating leases. Lease terms are generally one year or less in duration. Allocation of Net Income and Net Loss The Partnership Agreement, as amended, and as described more fully in "Note D", provides for net income and net losses for both financial and tax reporting purposes to be allocated 99.8% to the Limited Partners and .2% to the General Partner. Advertising Costs Advertising costs of approximately $67,000 in 1997, and approximately $68,000 in 1996 were charged to expenses as incurred and are included in operating expenses. 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 amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. NOTE B - RELATED PARTY TRANSACTIONS The Partnership has no employees and is dependent on the General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for payments to affiliates for services and the reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following expenses were paid or accrued to an affiliate of the General Partner during the years ended December 31, 1997 and 1996: 1997 1996 (in thousands) Property management fees (included in operating expenses) $152 $160 Reimbursements for services of affiliates (included in general and administrative expenses) 110 119 Included in reimbursements for services of affiliates is approximately $1,000 and $5,000 of reimbursements for construction oversight costs in 1997 and 1996, respectively. During the year ended December 31, 1997, an affiliate of Insignia received approximately $100,000 in reimbursements related to the sale of Celina Plaza, (See "Note F"). The Partnership Agreement also provides for a special management fee equal to 9% of the total distributions made to the Limited Partners to be paid to the General Partner for executive and administrative management services. No such fees were paid or accrued in 1997 or 1996. For the period of January 1, 1996 to August 31, 1997, the Partnership insured its properties under a master policy through an agency and insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the master policy. The agent assumed the financial obligations to the affiliate of the General Partner, who received payments on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the General Partner by virtue of the agent's obligations was not significant. NOTE C - COMMITMENT The Partnership is required to maintain working capital reserves for contingencies of not less than 5% of Net Invested Capital as defined in the Partnership Agreement. In the event expenditures are made from these reserves, operating revenue shall be allocated to such reserves to the extent necessary to maintain the foregoing level. Reserves, consisting of cash and cash equivalents, tenant security deposits, investments and reserves for capital improvements and contingencies totaling approximately $2,676,000 are more than the reserve requirement of approximately $2,070,000 at December 31, 1997. The excess in reserves primarily results from the sale of Celina Plaza Apartments. See "Note E" regarding a distribution subsequent to December 31, 1997. NOTE D - CHANGE IN STATUS OF NON-CORPORATE GENERAL PARTNER During the year ended December 31, 1991, the Partnership Agreement was amended to convert the General Partner interests held by the non-corporate General Partner, Consolidated Capital Group II ("CCG"), to that of special limited partners ("Special Limited Partners"). The Special Limited Partners do not have a vote and do not have any of the other rights of a Limited Partner except the right to inspect the Partnership's books and records; however, the Special Limited Partners retained the economic interest in the Partnership which they previously owned as a general partner. ConCap Equities, Inc. ("CEI") became the sole general partner of the Partnership effective December 31, 1991. In connection with CCG's conversion, a special allocation of gross income was made to the Special Limited Partners in order to eliminate its tax basis negative capital account. After the conversion, the various Special Limited Partners transferred portions of their interests to CEI so that CEI now holds a .2% interest in all allocable items of income, loss and distribution. The differences between the Special Limited Partners' capital accounts for financial statement and tax reporting purposes are being amortized to the Limited Partners' capital accounts as the components of the timing differences which created the balance reverse. NOTE E - DISTRIBUTIONS No distributions were declared or paid during the twelve months ended December 31, 1997 and 1996. A distribution totaling $500,000 from surplus funds from the sale of Celina Plaza was declared to the Limited Partners subsequent to December 31, 1997. NOTE F - SALE OF PROPERTY On October 20, 1997, the Partnership sold Celina Plaza Apartments, located in El Paso, Texas, to an unaffiliated party, The Vandenburg Organization, a Texas corporation. The sales price of the property was $6,600,000 and the sale resulted in net proceeds of approximately $6,456,000, after payment of closing costs. The net proceeds were used to pay accrued taxes and to pay-off the mortgage debt secured by this property. Excess proceeds after such payments amounted to approximately $779,000 to the Partnership. NOTE G - MORTGAGE NOTE PAYABLE The principal terms of mortgage note payable are as follows (dollar amounts in thousands): Principal Monthly Principal Balance At Payment Stated Balance December 31, Including Interest Maturity Due At Property 1997 Interest Rate Date Maturity Colony of Springdale 1st mortgage $ 4,407 40 9.50% 05/01 $ 4,152 Scheduled principal payments of mortgage note payable subsequent to December 31, 1997 are as follows (in thousands): 1998 $ 66 1999 73 2000 80 2001 4,188 Total $ 4,407 NOTE H - INVESTMENT PROPERTY AND ACCUMULATED DEPRECIATION Initial Cost To Partnership Buildings Cost and Related Capitalized Personal Subsequent to Description Encumbrances Land Property Acquisition (in thousands) Colony of Springdale Springdale, Ohio $ 4,407 $ 909 $ 8,358 $ 599
Gross Amount At Which Carried At December 31, 1997 Buildings And Related Personal Accumulated Date Depreciable Description Land Property Total Depreciation Acquired Life-Years (in thousands) Colony of Springdale Apartments $ 916 $ 8,950 $ 9,866 $ 3,641 2/20/87 5-30
Reconciliation of "Investment Property and Accumulated Depreciation" (in thousands): Years Ended December 31, 1997 1996 Investment Property Balance at beginning of year $16,664 $16,306 Property improvements 167 404 Disposals of property (6,965) (46) Balance at End of Year $ 9,866 $16,664 Accumulated Depreciation Balance at beginning of year $ 7,150 $ 6,452 Additions charged to expense 660 713 Disposals of property (4,169) (15) Balance at end of year $ 3,641 $ 7,150 The aggregate cost of investment property for Federal income tax purposes at December 31, 1997 and 1996 is approximately $8,938,000 and $15,873,000. The accumulated depreciation taken for Federal income tax purposes at December 31, 1997 and 1996 is approximately $3,380,000 and $7,237,000, respectively. NOTE I - INCOME TAXES Taxable income or loss of the Partnership is reported in the income tax returns of its partners. Accordingly, no provision for income taxes is made in the financial statements of the Partnership. Differences between the net income or loss as reported and Federal taxable income or loss result primarily from (1) depreciation over different methods and lives and on differing cost bases of investment properties, (2) gain on sale of property, and (3) write off of debt discounts. The following is a reconciliation of reported net income or loss and Federal taxable income or loss (in thousands, except unit data): 1997 1996 Net income (loss) as reported $ 3,359 $ (553) Add (deduct): Depreciation differences 116 90 Unearned income 19 (67) Gain on sale 94 -- Other 4 (156) Write-off of debt discounts (666) -- Accruals and prepaids 5 18 Federal taxable income (loss) $ 2,931 $ (668) Federal taxable income (loss) per limited partnership unit $ 15.49 $(3.52) The following is a reconciliation between the Partnership's reported amounts and Federal tax basis of net assets and liabilities (in thousands): Net assets as reported $ 4,309 Land and buildings (927) Accumulated depreciation 261 Syndication and distribution costs 4,989 Other 1,182 Net assets - Federal tax basis $ 9,814 ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. PART III ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS, COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT The Registrant has no officers or directors. The General Partner manages and controls the Registrant and has general responsibility and authority in all matters affecting its business. The name of the directors and executive officers of ConCap Equities, Inc. ("CEI"), the Partnership's General Partner, their age and the nature of all positions with CEI presently held by them are set forth below. There are no family relationships between or among any officers and directors. Name Age Position William H. Jarrard, Jr. 51 President & Director Ronald Uretta 41 Vice President & Treasurer Martha L. Long 38 Controller Robert D. Long, Jr. 30 Vice President Daniel M. LeBey 32 Vice President & Secretary Kelley M. Buechler 40 Assistant Secretary William H. Jarrard, Jr. has been President and Director of the General Partner since December 1996. He has acted as Senior Vice President of Insignia Properties Trust ("IPT"), parent of the Corporation, since May 1997. Mr. Jarrard previously acted as Managing Director - Partnership Administration of Insignia from January 1991 through September 1997 and served as Managing Director - Partnership Administration and Asset Management from July 1994 until January 1996. Ronald Uretta has been Vice President and Treasurer of the General Partner since December 1996 and Insignia's Treasurer since January 1992. Since August 1996, he has also served as Chief Operating Officer. He has also served as Secretary from January 1992 to June 1996 and as Insignia's Chief Financial Officer from January 1992 to August 1996. Martha L. Long has been Controller of the General Partner since December 1996 and Senior Vice President - Finance and Controller of Insignia since January 1997. In June 1994, Ms. Long joined Insignia as its Controller, and was promoted to Senior Vice President - Finance in January 1997. Prior to that time, she was Senior Vice President and Controller of the First Savings Bank, in Greenville, SC. Robert D. Long, Jr. has been Vice President of the General Partner since January 1998. Mr. Long joined Metropolitan Asset Enhancement, L.P. ("MAE"), an affiliate of Insignia, in September 1993. Since 1994 he has acted as Vice President and Chief Accounting Officer of the MAE subsidiaries. Mr. Long was an accountant for Insignia until joining MAE in 1993. Prior to joining Insignia, Mr. Long was an auditor for the State of Tennessee and was associated with the accounting firm of Harsman Lewis and Associates. Daniel M. LeBey has been Vice President and Secretary of the General Partner since January 29, 1998 and Insignia's Assistant Secretary since April 30, 1997. Since July 1996 he has also served as Insignia's Associate General Counsel. From September 1992 until June 1996, Mr. LeBey was an attorney with the law firm of Alston & Bird LLP, Atlanta, Georgia. Kelley M. Buechler has been Assistant Secretary of the General Partner since June 1996 and Assistant Secretary of Insignia since 1991. ITEM 10. EXECUTIVE COMPENSATION No direct compensation was paid or payable by the Partnership to directors or officers for the year ended December 31, 1997, nor was any direct compensation paid or payable by the Partnership to directors or officers of the General Partner for the year ended December 31, 1996. The Partnership has no plans to pay any such remuneration to any directors or officers of the General Partner in the future. See "Item 7 - Financial Statements, Note B - Related Party Transactions", for amounts of compensation and reimbursement of salaries paid by the Partnership to the General Partner and its affiliates. ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT (a) Security Ownership of Certain Beneficial Owners Except as provided below, as of December 31, 1997, no person was known to CEI to own of record or beneficially more than five percent of the Units of the Partnership. Number of Percent Name and Address Units Of Total Insignia Properties, L.P. 41,576 22.93% One Insignia Financial Plaza Greenville, SC 29602 Insignia Properties, L.P. is an affiliate of Insignia. (b) Beneficial Owners of Management Neither CEI nor any of the directors or officers or associates of CEI own any Units of the Partnership of record or beneficially. (c) Changes in Control Beneficial Owners of CEI As of December 31, 1997, the following persons were known to CEI to be the beneficial owners of more than 5 percent (5%) of its common stock: Number of Percent Name and Address CEI Shares Of Total Insignia Properties Trust 100,000 100% One Insignia Financial Plaza Greenville, SC 29602 Insignia Properties Trust is an affiliate of Insignia (See "Item 1"). ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Transactions with Current Management and Others The Partnership has no employees and is dependent on the General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for payments to affiliates for services and the reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following expenses were paid or accrued to an affiliate of the General Partner during the years ended December 31, 1997 and 1996: 1997 1996 (in thousands) Property management fees (included in operating expenses) $152 $160 Reimbursements for services of affiliates (included in general and administrative expenses) 110 119 Included in reimbursements for services of affiliates is approximately $1,000 and $5,000 of reimbursements for construction oversight costs in 1997 and 1996, respectively. During the year ended December 31, 1997, an affiliate of Insignia received approximately $100,000 in reimbursements related to the sale of Celina Plaza, (See "Note F"). The Partnership Agreement also provides for a special management fee equal to 9% of the total distributions made to the Limited Partners to be paid to the General Partner for executive and administrative management services. No such fees were paid or accrued in 1997 or 1996. For the period of January 1, 1996 to August 31, 1997, the Partnership insured its properties under a master policy through an agency and insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the master policy. The agent assumed the financial obligations to the affiliate of the General Partner, who received payments on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the General Partner by virtue of the agent's obligations was not significant. Conversion of Non-Corporate General Partner; Special Allocation In the year ended December 31, 1991, the Partnership Agreement was amended to convert the general partner interest held by the non-corporate general partner, CCG, to that of a special limited partner ("Special Limited Partner"). The Special Limited Partner does not have a vote and does not have any of the other rights of a Limited Partner except the right to inspect the Partnership's books and records; however, the Special Limited Partner will retain the economic interest in the Partnership which it previously owned as general partner. CEI became the sole general partner of the Partnership effective as of December 31, 1991. In connection with CCG's conversion, a special allocation of gross income was made to the Special Limited Partner in order to eliminate its tax basis negative capital account. After the conversion, the various owners of interests in the Special Limited Partner transferred portions of their interests to CEI so that CEI now holds a .2% interest in all allocable items of income, loss and distribution. The difference between the Special Limited Partners' capital accounts for financial statement and tax reporting purposes is being amortized to the Limited Partners' capital account as the components of the timing differences which created the balance reverse. ITEM 13. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8-K (a) Exhibits: Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. See Exhibit Index contained herein for listing of exhibits. (b) Reports on Form 8-K filed during the fourth quarter of 1997: None. SIGNATURES In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CONSOLIDATED CAPITAL PROPERTIES VI By: CONCAP EQUITIES, INC. General Partner By: /s/William H. Jarrard, Jr. William H. Jarrard, Jr. President By: /s/Ronald Uretta Ronald Uretta Vice President/Treasurer Date: March 3, 1998 In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated. /s/William H. Jarrard, Jr. President William H. Jarrard, Jr. /s/Ronald Uretta Vice President/Treasurer Ronald Uretta INDEX OF EXHIBITS EXHIBIT NO. DOCUMENT DESCRIPTION 3 Certificates of Limited Partnership as amended to date. 10.1 Bill of Sale and Assignment dated October 23, 1990, by and between CCEC and ConCap Services Company (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1990). 10.2 Assignment and Assumption Agreement dated October 23, 1990, by and between CCEC and ConCap Management Limited Partnership ("CCMLP") (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1990). 10.3 Property Management Agreement No. 119 dated April 9, 1991, by and between Colony Springdale Associates and CCMLP. (Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1991). 10.4 Assignment and Agreement as to Certain Property Management Services dated April 9, 1991, by and between CCMLP and ConCap Capital Company. (Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1991). 10.5 Investor Services Agreement dated October 23, 1990, by and between the Partnership and CCEC (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1990). 10.6 Assignment and Assumption Agreement (Investor Services Agreement) dated October 23, 1990, by and between CCEC and ConCap Services Company. (Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1990). 10.7 Letter of Notice dated December 20, 1991, from Partnership Services, Inc. ("PSI") to the Partnership regarding the change in ownership and dissolution of ConCap Services Company whereby PSI assumed the Investor Services Agreement. (Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1991). 10.8 Financial Services Agreement dated October 23, 1990, by and between the Partnership and CCEC (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1990). 10.9 Assignment and Assumption Agreement (Financial Services Agreement) dated October 23, 1990, by and between CCEC and ConCap Capital Company (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1990). 10.10 Letter of Notice dated December 20, 1991, from PSI to the Partnership regarding the change in ownership and dissolution of ConCap Capital Company whereby PSI assumed the Financial Services Agreement. (Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1991). 10.11 Property Management Agreement No. 421 dated May 13, 1993, by and between the Partnership and Coventry Properties, Inc. (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1993). 10.12 Assignment and Assumption Agreement(Property Management Agreement No. 421) dated May 13, 1993, by and between Coventry Properties, Inc. R&B Apartment Management Company, Inc. and Partnership Services, Inc. (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1993). 10.13 Assignment and Agreement as to Certain Property Management Services dated May 13, 1993, by and between Coventry Properties, Inc. and Partnership Services, Inc. (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1993). 10.14 Property Management Agreement No. 515 dated June 1, 1993, by and between the Partnership and Coventry Properties, Inc. 10.15 Assignment and Agreement as to Certain Property Management Services dated November 17, 1993, by and between Coventry Properties, Inc. and Partnership Services, Inc. 10.16 Stock and Asset Purchase Agreement, dated December 8, 1994 (the "Gordon Agreement"), among MAE-ICC, Inc. ("MAE- ICC"), Gordon Realty Inc. ("Gordon"), GII Realty, Inc. ("GII Realty"), and certain other parties. (Incorporated by reference to Form 8-K dated December 8, 1994) 10.17 Exercise of the Option (as defined in the Gordon Agreement), dated December 8, 1994, between MAE-ICC and Gordon. (Incorporated by reference to Form 8-K dated December 8, 1994) 10.18 Exercise of the remaining portion of the Option (as defined in the Gordon Agreement) dated December 8, 1994, between MAE-ICC and Gordon. (Incorporated by reference to Form 8-K dated October 24, 1995) 10.19 Contract to Purchase and Sell Property made and entered into as of August 13, 1997, but effective October 20, 1997, by and between Consolidated Capital Properties VI, a California limited partnership, and The Vandenburg Organization, a Texas corporation regarding Celina Plaza Apartments. 10.20 Assignment and assumption of Leases dated October 13, 1997, by and between Consolidated Capital Properties VI, a California limited partnership and The Vandenburg Organization, a Texas corporation, regarding Celina Plaza Apartments. 10.21 Blanket Conveyance, Bill of Sale and Assignment dated October 13, 1997, by and between Consolidated Capital Properties VI, a California limited partnership and The Vandenburg Organization, a Texas corporation, regarding Celina Plaza Apartments. 11 Statement regarding computation of Net Income per Limited Partnership Unit (Incorporated by reference to Note 1 of Item 8 - Financial Statements of this Form 10-K). 16.1 Letter, Dated August 12, 1992, from Ernst & Young to the Securities and Exchange Commission regarding change in certifying accountant. (Incorporated by reference to Form 8-K dated August 6, 1992) 16.2 Letter dated May 9, 1995 from the Registrant's former independent accountant regarding its concurrence with the statements made by the Registrant regarding a change in the certifying accountant. (Incorporated by reference to Form 8-K dated May 3, 1995) EX-27 2
5 This schedule contains summary financial information extracted from Consolidated Capital Properties VI 1997 Year-End 10-KSB and is qualified in its entirety by reference to such 10-KSB filing. 0000755908 CONSOLIDATED CAPITAL PROPERTIES VI 1,000 12-MOS DEC-31-1997 DEC-31-1997 1,949 0 349 0 0 0 9,866 (3,641) 9,020 0 4,407 0 0 0 4,309 9,020 0 6,598 0 0 3,239 0 680 0 0 0 0 0 0 3,359 18.49 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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