-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, V+WG/PFhNTE1wvwp9kueg7h2MN/TYV3d0jjnoPvI4w3LjKO3RpakDRoumSD5w/// ynP1qxN0ce+qQF9OfiaPxw== 0000765506-94-000008.txt : 19940822 0000765506-94-000008.hdr.sgml : 19940822 ACCESSION NUMBER: 0000765506-94-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALIFORNIA SEVEN ASSOCIATES LTD PARTNERSHIP CENTRAL INDEX KEY: 0000765506 STANDARD INDUSTRIAL CLASSIFICATION: 6513 IRS NUMBER: 942970056 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14581 FILM NUMBER: 94544054 BUSINESS ADDRESS: STREET 1: 900 COTTAGE GROVE RD STREET 2: SOUTH BLDG CITY: BLOOMFIELD STATE: CT ZIP: 06002 BUSINESS PHONE: 2037266000 MAIL ADDRESS: STREET 1: 900 COTTAGE GROVE RD STREET 2: SOUTH BUILDING CITY: BLOOMFIEELD STATE: CT ZIP: 06002 10-Q 1 CALIFORNIA SEVEN ASSOCIATES LIMITED PARTNERSHIP UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1994 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-14581 California Seven Associates Limited Partnership, a California Limited Partnership (Exact name of registrant as specified in its charter) California 94-2970056 (State of Organization) (I.R.S. Employer Identification No.) 900 Cottage Grove Road, South Building Bloomfield, Connecticut 06002 (Address of principal executive offices) Telephone Number: (203) 726-6000 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 Part I - Financial Information California Seven Associates Limited Partnership, a California Limited Partnership
Balance Sheets June 30 December 31 1994 1993 Assets (Unaudited) (Audited) Property and improvements, at cost: Land and land improvements $20,562,073 $20,562,073 Buildings 109,678,470 109,659,882 Furniture and fixtures 12,968,727 12,925,199 Machinery and equipment 701,207 681,295 143,910,477 143,828,449 Less accumulated depreciation 46,023,439 43,907,921 Net property and improvements 97,887,038 99,920,528 Cash and cash equivalents 848,195 1,440,476 Accounts receivable 329,161 388,172 Prepaid expenses 75,114 792 Other assets 20,864 19,040 Total $99,160,372 $101,769,008
Liabilities and Partners' Deficit Liabilities: Note and mortgages payable $111,983,903 $111,983,903 Accrued interest payable 2,531,018 1,600,118 Accounts payable and accrued expenses 404,350 446,318 Tenant security deposits 437,098 472,865 Unearned income 201,941 303,995 Deferred management fees 2,000,000 2,000,000 Fees and reimbursements payable to the General Partner and its affiliates 4,018,306 3,848,505 Other liabilities 101,093 33,957 Total liabilities 121,677,709 120,689,661 Partners' deficit: General Partner (768,421) (732,454) Limited partners (362 Class A Units and 3 Class B Units): (21,748,916) (18,188,199) Total partners' deficit (22,517,337) (18,920,653) Total $99,160,372 $101,769,008 The Notes to Financial Statements are an integral part of these statements.
California Seven Associates Limited Partnership, a California Limited Partnership
Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 1994 1993 1994 1993 Property operating revenues: Rental income $3,324,545 $4,119,466 $6,996,643 $8,427,546 Other 121,708 239,543 262,967 418,742 3,446,253 4,359,009 7,259,610 8,846,288 Operating expenses: Maintenance and repairs, furniture rental, insurance, and other property operations 702,119 805,429 1,416,435 1,667,972 Real estate taxes 343,786 369,209 694,516 738,418 Management fees 138,505 139,301 281,690 273,769 Property administrative 641,351 917,880 1,353,228 1,876,748 1,825,761 2,231,819 3,745,869 4,556,907 Net property revenue 1,620,492 2,127,190 3,513,741 4,289,381 Other operating costs and (income) expenses: Depreciation and amortization 1,056,298 1,117,542 2,115,518 2,231,007 Management and administrative fees to affiliates 79,462 82,864 155,096 164,372 Partnership administrative 39,130 30,344 82,573 56,632 Net recovery on business interruption resulting from California earthquake (465,469) -- (465,469) -- 709,421 1,230,750 1,887,718 2,452,011 Net partnership operating income 911,071 896,440 1,626,023 1,837,370 Interest income 3,376 10,034 8,193 26,156 Interest expense (2,615,450)(2,615,450) (5,230,900)(5,230,900) Net loss $(1,701,003)$(1,708,976)$(3,596,684)$(3,367,374) Net loss: General Partner $(17,010) $(17,090) $ (35,967) $(33,674) Limited partners (1,683,993)(1,691,886) (3,560,717)(3,333,700) $(1,701,003)$(1,708,976)$(3,596,684)$(3,367,374) Net loss per Class A Unit $ (4,652) $ (4,674) $ (9,836) $ (9,209) The Notes to Financial Statements are an integral part of these statements.
California Seven Associates Limited Partnership, a California Limited Partnership
Statements of Cash Flows For the Six Months Ended June 30, 1994 and 1993 (Unaudited) 1994 1993 Cash flows from operating activities: Net loss $(3,596,684) $(3,367,374) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,115,518 2,231,007 Accounts receivable 59,011 (6,997) Accrued interest payable 930,900 760,667 Accounts payable and accrued expenses (39,625) (99,602) Fees and reimbursements payable to the General Partner and its affiliates 169,801 178,369 Other, net (146,831) 255,304 Net cash used in operating activities (507,910) (48,626) Cash flows from investing activities: Purchase of property and improvements (82,028) (243,649) Cash flows from financing activities: Cash distribution to limited partners (2,343) (6,322) Net decrease in cash and cash equivalents (592,281) (298,597) Cash and cash equivalents, beginning of year 1,440,476 2,268,544 Cash and cash equivalents, end of period $ 848,195 $1,969,947 Supplemental disclosure of cash information: Interest paid during period $4,300,000 $4,470,233 The Notes to Financial Statements are an integral part of these statements.
California Seven Associates Limited Partnership, a California Limited Partnership Notes to Financial Statements (Unaudited) Readers of this quarterly report should refer to the audited financial statements for California Seven Associates Limited Partnership, a California Limited Partnership ("the Partnership"), for the year ended December 31, 1993 which are included in the Partnership's 1993 Annual Report, as certain footnote disclosures which would substantially duplicate those contained in such audited financial statements have been omitted from this report. 1. Basis of Accounting a) Basis of Presentation: The accompanying financial statements were prepared in accordance with generally accepted accounting principles. It is the opinion of management that the financial statements presented reflect all the adjustments necessary for a fair presentation of the financial condition and results of operations. b) Cash and Cash Equivalents: Short-term investments with a maturity of three months or less at the time of purchase are reported as cash equivalents. 2. Property and Improvements and Note and Mortgages Payable At June 30, 1994 the Partnership owned six properties located in California totaling 2,135 units with leases generally for a term of one year or less. All properties are pledged as security for the long-term debt. The Partnership is currently in default on its second mortgage loan obligation and could lose its investment in property and improvements through foreclosure. The balance of the second mortgage note at June 30, 1994 was $14,000,000 plus $1,330,350 of accrued and unpaid interest. Although the second mortgage holder has acknowledged the default, the Partnership has not received a notice of acceleration. The Sherman Oaks property sustained extensive damage from the January 17, 1994 Southern California earthquake. The property was "red-tagged" by city inspectors which means that the property is unsafe for use. It is currently unoccupied. The Partnership's properties are covered by insurance, including earthquake and business interruption; although the policy carries a 5% deductible. The Partnership is working with the insurance company, the first mortgage lender and the appropriate hired professionals and has completed surveys and cost estimates. The first mortgage lender has discretion as to the decision to rebuild or apply the net insurance proceeds to reduce the outstanding debt obligation. The first mortgage lender has not yet informed the Partnership as to their preference to repair/rebuild or collect net insurance proceeds. The carrying value of the Sherman Oaks property at June 30, 1994 was $17,315,911. The financial statements do not include any adjustments for possible losses resulting from the earthquake. On April 24, 1994, the Partnership received a $750,000 advance on the business interruption policy for the earthquake damaged property. During July 1994, a claim for $1,215,000, representing the first six months of 1994 business interruption, was submitted to the insurance company. Included in the income statement as "Net recovery on business interruption resulting from California earthquake" for the three and six months ended June 30, 1994 is the insurance advance less costs specifically associated with the earthquake. All other income statement lines for 1994 as they relate to the Sherman Oaks property only include activity related to the period from January 1, 1994 to January 16, 1994, if applicable. The income statement does not include any other amounts relating to the pending claim with the insurance company for the first six months of 1994 operations. California Seven Associates Limited Partnership, a California Limited Partnership Notes to Financial Statements - Continued (Unaudited) 3. Transactions with Affiliates Fees and other expenses required to be paid by the Partnership to the General Partner or its affiliates are as follows: Three Months Ended Three Months Ended Unpaid at June 30, June 30, June 30, 1994 1993 1994 1993 1994 Interest on assignment note $ 22,000 $ 22,000 $ 44,000 $ 44,000 $ 484,001 Asset management fee 41,962 45,364 80,096 89,372 2,399,141 Administration and management fee -- -- -- -- 260,050 General partner's salary 37,500 37,500 75,000 75,000 825,000 Real Estate Advisory fee -- -- -- -- 518,750 Reimbursement (at cost) for out of pocket expenses 9,131 9,861 15,676 17,150 15,365 $110,593 $114,725 $214,772 $225,522 $4,502,307 4. Litigation In California Seven Associates Limited Partnership, et al v. SBD Group, Inc. et al [Case no. 716034 (Superior Court of the State of California, Orange County)] Pursuant to a Minute Order granted by the Judge, the Court has found that the Defendants breached their contract with the Partnership resulting in damages in the sum of $152,308.84, plus interest. Defendants counsel has filed a Motion for Reconsideration; thereby asking the Court to review its prior ruling. The lawsuit stems from Defendants refusal to forward rent payments which accrued while the Partnership owned the property (Torrance Oakwood 20900 Anza, City of Torrance). Plaintiffs in suit brought against the Partnership and its General Partner [Theodore D. Cohen, et al v. California Seven Associates, et al., No. 657925 (Orange County, CA, May 16, 1991)] are class members in a federal court action in Chicago [In re VMS Securities Litigation, No. 90 c 2412, N.D. Ill.]. Plaintiffs have been notified of the Class Settlement. As a result of Plaintiffs failure to opt-out of the Class Action, Defendant has filed a Motion for Summary Judgment. The likelihood of an unfavorable outcome or the extent of any possible liability cannot be assessed at this time. California Seven Associates Limited Partnership, a California Limited Partnership Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources One of the Partnership's six properties, Sherman Oaks, sustained extensive damage from the Southern California earthquake on January 17, 1994. The property was evacuated and city inspectors classified the property as unsafe for use. The Partnership has insurance for the damage and for business interruption, subject to a 5% deductible. On April 29, 1994, the Partnership received a $750,000 advance from the insurance company on the business interruption policy. During July, a claim for $1,215,000, representing the first six months of 1994 business interruption, was submitted to the insurance company. Payment on that claim, less the advance previously received and the 5% deductible, is expected in August. At June 30, 1994, the Partnership had $848,195 in cash and cash equivalents which is to be used for working capital and for payment of accrued liabilities. The Partnership's accrued liabilities at June 30, 1994 include the July 1, 1994 first mortgage debt service payment of $716,667 and tenant security deposits of $437,000. On July 1, 1994, the Partnership made the monthly first mortgage payment. The Partnership collected sufficient rents in July to fund July's monthly recurring operating expenses and the first mortgage payment for July of $716,667, paid on August 1, 1994. The Partnership's cash flow from operations after debt service and capital improvements has been in a continual deficit position. As a result of cash flow deficits and the lack of investor equity, the Partnership began withholding payment of debt service on its second mortgage beginning November 1, 1993 and remains in default at June 30, 1994. During 1994, the Partnership has, and intends to continue to, limit capital expenditures to those needed for safety and structural integrity. Any additional capital expenditures will be limited to those which can be funded from property operations after first mortgage debt service. The General Partner has estimated 1994 operations to be sufficient to cover first mortgage debt service and necessary capital expenditures, exclusive of Sherman Oaks normal property operations, but inclusive of collections representing reimbursement for loss of operations (net operating income) from business interruption insurance. Dependant on the timing of the insurance reimbursement, the General Partner may have to take further steps to preserve the Partnership's cash. The Partnership continues to face increasing risk of losing the properties through foreclosure as the second mortgage remains in default and the General Partner takes steps to maintain the precariously low level of Partnership reserves. Even if an agreement is reached with the second mortgage lender to remedy the default, the uncertainty surrounding the earthquake and satisfaction of the requirements of the first mortgage remain unresolved. During July 1994, a meeting was held with the first mortgage lender to review the status of the earthquake damaged property and the first mortgage note. Subsequent to the meeting, a written proposal was submitted to the lender requesting a modification to existing debt terms, including an extension of the maturity date, an interest rate reduction, and deferment of monthly payments into an escrow account until enough funds accumulated to fund the earthquake insurance deductible. In addition, a request was made for a timely decision on intent to repair/rebuild or apply net insurance proceeds to the outstanding mortgage balance. The lender rejected the request for a modification of terms and has not yet indicated their preference relative to the earthquake damaged property. As decisions are made to repair/rebuild or apply insurance proceeds to the outstanding first mortgage obligation, cash flow and Partnership reserves will be impacted. At the present time, the Partnership's reserves will not allow funding of the 5% deductible needed to rebuild, possibly subjecting the properties to foreclosure. If the insurance proceeds are applied to the outstanding balance of the first mortgage, the remaining five operating properties may be unable to generate sufficient cash flow to service the remaining first mortgage obligation. The amount of insurance proceeds that will be available and the first mortgage lender's decision as to the application of the proceeds are unknown at this time. The General Partner will continue to pursue alternatives to restructure and extend the mortgage debt. Regardless of how future events transpire, it is unlikely that any debt restructuring or market improvement will be sufficient to materially improve the outlook for limited partners. Under any potential scenario, the likelihood of any cash being available for investors at wrap- up is doubtful. Results of Operations The Sherman Oaks property sustained extensive damage from the Southern California earthquake on January 17, 1994, following which the property was evacuated and city inspectors classified the property as unsafe for use. As a result, the property has generated little revenue for the first quarter and has had a substantial decrease in operating expenses. Sherman Oaks' results for the six months ended June 30, 1994, as compared with the same period in 1993, were effected as follows: Rental income decreased approximately $1,607,000, other income decreased approximately, $45,000, property operating expenses decreased approximately $278,000 and property administrative expenses decreased approximately $342,000. The results for the three months ended June 30, 1994, as compared with the same period of 1993, were effected as follows: Rental income decreased approximately $829,000, other income decreased approximately $31,000, property operating expenses decreased approximately $156,000 and property administrative expenses decreased approximately $203,000. The following analytical comments have been limited to the Partnership's five other properties. The weakness in the Southern California economy and increased competition, both of which have had an adverse impact on occupancy and, subsequently, rental rates, have combined to support the Partnership's decision to convert a number of the properties to conventional apartments, unfurnish more units at the remaining OAKWOOD properties, and to switch to an effective rent strategy to maintain occupancy and market share. The strategies appeared to have worked in 1993; occupancy percentages were restored and stabilized and rental rates began to pick back up slightly. Results improved considerably for the first quarter of 1994. Exclusive of the Sherman Oaks property, net property revenues (property level revenues less property level operating expenses) increased to $2,097,000, a 15% increase from 1993's first quarter result of $1,821,000 and a 22% increase from 1993's fourth quarter result of $1,720,000. Net property revenues for the second quarter 1994 were down from the first quarter of 1994 and the comparable quarter of 1993. Typically, the second quarter results have lagged behind strong first quarter earnings. During the second quarter of 1993, the Partnership collected redecorating fees from new laundry contracts at Pacifica Club and Arbor Park aggregating to $70,000. Excluding the one-time fees and exclusive of Sherman Oaks, net property revenues for the second quarter 1994 totalled $1,762,000 compared with the $1,709,000 for the same period of 1993. For the six months ended June 30, 1994, results are up 10% exclusive of the laundry contract fees and Sherman Oaks compared with the same period of 1993. Effective January 1, 1994, Mission Bay East converted from OAKWOOD operations to conventional apartment operations. As part of the conversion, the property is transitioning to a large majority of unfurnished units. During the second quarter, the property continued unfurnishing as the post-conversion target for furnished units is 80. At June 30, 1994, the furnished units stood at 180. Although the property ended the first quarter with a drop in occupancy percentage, average occupancy for the first quarter included some leftover corporate rentals which, California Seven Associates Limited Partnership, a California Limited Partnership Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) combined with expense savings from the conversion, helped boost net property revenue for the first quarter 1994 by 12% compared to the first quarter of 1993 and 16% compared to the fourth quarter of 1993. Net property revenue for the second quarter 1994 was down from the first quarter but up 8% from the second quarter of 1993. The property had average occupancy for the quarter of 86% and ended the quarter at 93%. At the Partnership's other conventionally run apartment properties, Arbor Park, Amberway and Pacifica Club, operations for the three and six months ended June 30, 1994, as compared to the same periods of 1993 have posted mixed results. Net property revenues for 1993 include one-time laundry contract fee income of $30,000, $38,000, and $40,000 for Arbor Park, Amberway, and Pacifica Club, respectively. Excluding the laundry contract fee, Arbor Park's results for the three and six months compared with the previous year were down 14% and 6%, respectively. The decrease is attributable to a steady experience of maintenance and repair expenses incurred in the first half of 1994 compared to very little in the first half of 1993. Arbor Park had proportionately higher level of maintenance expenses in the latter half of 1993. Amberway's net revenue, exclusive of 1993 laundry contract revenue, dropped 20% and 2% for the three and six months, respectively, compared to the previous year. The drop is directly related to weak occupancies. Physical occupancy was negatively impacted by relocations, job loss and home purchases. Offsetting a portion of the six month drop in revenue was a large drop in maintenance and repairs expenses. Pacifica Club's net property revenue increased, exclusive of laundry contract revenue, by 26% and 20% for the three and six months ended June 30, 1994, respectively, compared with the same periods of the previous year. The increases are attributable to strong occupancies, lower taxes, and savings in repair and maintenance expenses in second quarter. The Partnership currently has one remaining property operating as an OAKWOOD. During the first quarter of 1994, the West Los Angeles OAKWOOD posted a 42% increase in net property revenue compared to the first quarter of 1993 and a 17% increase compared to the fourth quarter of 1993. For the second quarter 1994, net property revenues are down from the first quarter but are up 6% compared with the second quarter of 1993 and 23% for the six month period ended June 30, 1994 compared with the first six months of 1993. Increases are attributable to increased average occupancy percentages, less discounting on corporate rental rates and lower expenses, including a drop in repairs and maintenance and worker compensation insurance. Average occupancy at West Los Angeles for the three and six months ended June 30, 1994 was up slightly, as compared with the same periods of 1993. The increase in average occupancy coupled with less corporate rate discounting increased rental income approximately $23,000 and $87,000 for the three and six month periods, respectively. At Mission Bay East, leftover corporate business from the first quarter contributed approximately $5,000 to the increase in rental income for the six months. Mission Bay East posted a $35,000 decrease for the three month period as conventional rates are lower than corporate rates and average occupancy dropped. Rental income at Pacifica Club increased approximately $116,000 for the six months and $76,000 for the three months as the result of higher average occupancy. At Arbor Park, a slight increase in rates led to a $16,000 and $22,000 increase in the three and six month periods, respectively. These increases were offset by $46,000 and $56,000 decreases for the three and six month periods, respectively, at Amberway because of weak occupancy. Other income decreased for the three and six months ended June 30, 1994, as compared with the same periods in 1993, due to one-time redecorating fees received from a new laundry contract in 1993 of $38,000, $40,000, and $30,000 at Amberway, Pacifica Club, and Arbor Park, respectively. The fee for Amberway was received and recorded in the first quarter of 1993 and the fees for Pacifica Club and Arbor Park were received and recorded in the second quarter of 1993. California Seven Associates Limited Partnership, a California Limited Partnership Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Overall, property operating expenses increased for the three and six months ended June 30, 1994, as compared to the same periods of the previous year. Amberway and West Los Angeles posted declines in maintenance and repair expenses due to costs in the first quarter of 1993 resulting from damages caused by heavy rains. Offsetting the decreases was an increase in utilities at Mission Bay East as a result of lower reimbursements for various utilities from corporate tenants. As the property converts to conventional operations from OAKWOOD, utilities will increase as the Partnership is not allowed to charge back certain utilities to its non- corporate tenants. Additionally, Mission Bay East and Arbor Park had increased non-routine maintenance for carpet replacements, faucets, and vinyl. Property taxes are down for the three and six months ended June 30, 1994, as compared with 1993, due to decreased assessments at Mission Bay East and Pacifica Club. The decrease in property administrative expense for the three and six months ended June 30, 1994, as compared with the same periods in 1993, was the result of a reduction of OAKWOOD related costs at Mission Bay East as the result of the conversion from OAKWOOD operations to conventional operations. The property saved $43,000 and $83,000 for the three and six month periods, respectively, in payroll related direct and indirect costs. Although conventional type advertising increased with the conversion, OAKWOOD related advertising dropped for the three and six month periods, for a net decrease of $32,000 and $23,000, respectively. West Los Angeles experienced significant savings in payroll related costs; $41,000 for the six month period and $9,000 for the three month period. West Los Angeles saved approximately $22,000 of the $41,000 on workers compensation insurance. The decrease in interest income for the three and six months ended June 30, 1994, as compared with the same periods in 1993, was due to the decrease in the average cash balance invested as a result of cash flow deficits. Amortization decreased for the three and six months ended June 30, 1994, as compared with 1993, due to deferred loan costs becoming fully amortized during 1993. Offsetting the decrease partially was an increase in depreciation from major additions in 1992 and 1993. California Seven Associates Limited Partnership, a California Limited Partnership Management's Discussion and Analysis of Financial Occupancy The following is a listing of approximate occupancy levels by quarter for the Partnership's investment properties during 1994 and 1993: 1993 1994 At 3/31 At 6/30 At 9/30At 12/31 At 3/31 At 6/30 The Anaheim Property 91% 96% 94% 91% 83% 81% The Huntington Beach Property 91% 86% 94% 96% 95% 98% The West Los Angeles Property 85% 93% 92% 83% 87% 92% The San Diego Property 86% 92% 86% 97% 84% 93% The Sherman Oaks Property (a) 87% 88% 88% 84% N/A N/A The Upland Property 92% 90% 91% 91% 91% 90% (a) The property was severely damaged by the January 17, 1994 Southern California earthquake. The property was evacuated and considered unsafe for use. Therefore, occupancy is not applicable for 1994. Part II - Other Information Item 1. Legal Proceedings The information included in the "Notes to Financial Statements, Note 4. Litigation" on page 6 of the Partnership's June 30, 1994 Financial Statements, is incorporated by reference. Item 3. Defaults by the Partnership on its Senior Securities The information included in the "Notes to Financial Statements, Note 2. Property and Improvements and Note and Mortgages Payable" on page 5 of the Partnership's June 30, 1994 Financial Statements is incorporated by reference. Item 6. Exhibits and Reports on Form 8-K (b) No Form 8-Ks were filed during the three months ended June 30, 1994. SIGNATURES 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. California Seven Associates Limited Partnership, a California Limited Partnership By: CIGNA Realty Resources, Inc. - Seventh, General Partner Date: August 15, 1994 By: /s/ John D. Carey John D. Carey, President and Controller (Principal Executive Officer) (Principal Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----