-----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, PdIBjSw/dc7hYDFKU7/t/GzT4kziOt6ByHJiBDIhaTmQU5qwap0HtWKSo+KRJvib tgRNPWoaxtgBuvw9lXZuvw== 0000802200-96-000001.txt : 19960322 0000802200-96-000001.hdr.sgml : 19960322 ACCESSION NUMBER: 0000802200-96-000001 CONFORMED SUBMISSION TYPE: 10KSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960321 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MULTI BENEFIT REALTY FUND 87-1 CENTRAL INDEX KEY: 0000802200 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 943026785 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10KSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-16684 FILM NUMBER: 96537164 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINNACIAL PLAZA STREET 2: P O BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 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) (As last amended by 34-31905, eff. 4/26/93) FORM 10-KSB [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [Fee Required] For the fiscal year ended December 31, 1995 or [ ] 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 0-16684 MULTI-BENEFIT REALTY FUND '87-1 (Name of small business issuer in its charter) California 94-3026785 (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) Issuer's telephone number (864) 239-1000 Securities registered under Section 12(b) of the Exchange Act: None Securities registered under Section 12(g) of the Exchange Act: Units of Depositary Receipts (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. $4,631,000. 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 December 31, 1995. $3,424,720. DOCUMENTS INCORPORATED BY REFERENCE None PART I Item 1. Description of Business Multi-Benefit Realty Fund '87-1 (the "Partnership" or "Registrant") was organized on September 8, 1986, as a limited partnership under the California Revised Limited Partnership Act. On December 10, 1986, the Partnership registered with the Securities and Exchange Commission under the Securities Act of 1933 (File No. 33-8908) and commenced a public offering for sale of $60 million of Units of Depositary Receipts (collectively, the "Units," and individually, "Unit"). Two classes of Units ("A" Units and "B" Units, herein so called), entitled to different rights and priorities as to cash distributions and partnership allocations, were offered. The Units represent economic rights attributable to the limited partnership interests in the Partnership and entitle the holders ("Unitholders") thereof to participate in certain allocations and distributions of the Partnership. The General Partner of the Partnership intended that the "A" Units and "B" Units be allocated such that the "B" Units would not exceed 25% nor be less than 20% of the total amount of the Units sold. At the end of the current fiscal year, the "B" Units represented approximately 44% of the total amount of the Units sold. The General Partner is currently considering several alternative procedures to conform the unit allocations more closely to the intended investment objectives. The General Partner intends to continue such consideration, but has not yet determined a feasible alternative. The Corporate Limited Partner of the Partnership is Multi-Benefit '87-1 Depositary Corporation, an affiliate of the General Partner. The Corporate Limited Partner serves as depositary for the Units pursuant to a Depositary Agreement entered into with the Partnership. The Partnership filed a Form 8-A Registration Statement with the SEC and registered its Units under the Securities Exchange Act of 1934 (File No. 0-16684) on April 11, 1988. The sale of Units closed on September 30, 1988, with 172,436 Units sold at $100 each, or gross proceeds of approximately $17.2 million to the Partnership. The Partnership retired a total of 1,000 Units during 1993, in accordance with its Partnership Agreement ("Agreement"). The Partnership gave no consideration for the Units retired. The Partnership may repurchase or retire any Units, at its absolute discretion, but is under no obligation to do so. Upon the Partnership's formation in 1986, Consolidated Capital Equities Corporation ("CCEC"), a Colorado corporation, was the sole general partner of the Partnership and the Corporate Limited Partner, a wholly-owned subsidiary of CCEC, was the sole limited partner. In 1988, through a series of transactions, Southmark Corporation ("Southmark") acquired a 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. ("CEI") acquired CCEC's general partner interest in the Partnership and in 15 other affiliated public limited partnerships (the "Affiliated Partnerships"), acquired the stock of the Corporate Limited Partner, 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 Unitholders in the Partnership and of the limited partners in each of the Affiliated Partnerships pursuant to a solicitation of the Unitholders dated August 10, 1990. As part of this solicitation, the Unitholders also approved an amendment to the Partnership Agreement to limit changes of control of the Partnership. All of CEI's outstanding stock is owned by GII Realty, Inc. In December 1994, the parent of GII Realty, Inc., entered into a transaction (the "Insignia Transaction") in which, among other things, MAE-ICC, Inc., a wholly owned subsidiary of Metropolitan Asset Enhancement, L.P. ("MAE"), 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, MAE-ICC, Inc. also acquired all of the outstanding stock of Partnership Services, Inc., an asset manager and a subsidiary of Insignia acquired all of the outstanding stock of Coventry Properties, Inc., a property manager. 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, MAE-ICC, Inc. exercised the remaining portion of its option to purchase all of the remaining outstanding capital stock of GII Realty, Inc. held by Gordon Realty, Inc. Pursuant to the terms of the option, MAE-ICC, Inc. acquired the remaining 49.5% of the outstanding capital stock of GII Realty, Inc. A further description of the Partnership's business is included in Management's Discussion and Analysis or Plan of Operation included in "Item 6" of this Form 10-KSB. The Registrant has no employees. Management and administrative services are performed by the General Partner and by Insignia Management Group, L.P., an affiliate of Insignia Financial Group, Inc. ("Insignia"), an affiliate of the General Partner. Pursuant to a management agreement between them, Insignia Management Group, L.P. provides property management services to the Registrant. The real estate business in which the Partnership is engaged is highly competitive and the Partnership is not a significant factor in this industry. The Registrant's property is subject to competition from similar properties in the vicinity in which the property is located. In addition, various limited partnerships have been formed by the General Partner and/or its affiliates to engage in business which may be competitive with the Registrant. Item 2. Description of Properties The following table sets forth the Registrant's investments in properties: Date of Property Purchase Type of Ownership Use Carlin Manor Apartments 11/87 Fee ownership. Apartment Columbus, Ohio 278 units Hunt Club Apartments 05/87 Fee ownership, subject Apartment Indianapolis, Indiana to first mortgage. 200 units Shadow Brook Apartments 05/87 Fee ownership, subject Apartment West Valley City, Utah to first mortgage. 300 units Schedule of Properties: (in thousands)
Gross Carrying Accumulated Federal Property Value Depreciation Rate Method Tax Basis Carlin Manor Apartments $ 6,329 $ 3,030 5-30 SL $ 5,517,811 Hunt Club Apartments 6,701 2,959 5-30 SL 4,439,057 Shadow Brook Apartments 10,043 3,031 5-30 SL 6,880,020 Total $23,073 $ 9,020 $16,836,888
See Note A to the financial statements in "Item 7" for a description of Partnership's depreciation policy. Schedule of Mortgages: (in thousands)
Principal Principal Balance At Stated Balance December 31, Interest Period Maturity Due At Property 1995 Rate Amortized Date Maturity Carlin Manor N/A N/A N/A N/A N/A Hunt Club 1st Mortgage $ 3,911 8.30% 84 mos. 10/00 $3,575 Shadow Brook 1st Mortgage 7,420 9.19% 60 mos. 06/97 7,253 $ 11,331
Average annual rental rate and occupancy for 1995 and 1994 for each property: Average Annual Average Annual Rental Rates Occupancy 1995 1994 1995 1994 Carlin Manor $5,359/unit $5,325/unit 86% 84% Hunt Club 6,893/unit 6,793/unit 91% 91% Shadow Brook 5,763/unit 5,792/unit 98% 98% As noted under "Item 1. Description of Business", the real estate industry is highly competitive. All of the properties of the partnership are subject to competition from other residential apartment complexes in the area. The Corporate General Partner believes that all of the properties are adequately insured. The multifamily residential properties' lease terms are for one year or less. No residential tenant leases 10% or more of the available rental space. Real estate taxes and rates in 1995 for each property were (in thousands): 1995 1995 Billing Rate Carlin Manor $ 97 5.02% Hunt Club Park 158 9.49% Shadow Brook 84 1.47% Item 3. Legal Proceedings The Partnership is unaware of any pending or outstanding litigation that is not of a routine nature. The General Partner believes that all such matters are adequately covered by insurance and will be resolved without a material adverse effect upon the business, financial condition, results of operations, or liquidity of the Partnership. Item 4. Submission of Matters to a Vote of Partners During the fiscal year ended December 31, 1995, no matter was submitted to a vote of the Unitholders through the solicitation of proxies or otherwise. PART II Item 5. Market For the Registrant's Units of Depository Receipts and Related Security Holder Matters (A) No established public trading market for the Units exists nor is one expected to develop. (B) Title of Class: Number of Record Unitholders: Units of Depositary Receipts A Units 96,284 as of December 31, 1995 B Units 75,152 as of December 31, 1995 (C) Distributions of $918,102 were made in 1995, while distributions of approximately $505,000 were paid in 1994. All of the distributions to the limited partners in both 1995 and 1994 were paid to the "A" Unitholders. No distributions have been made to the "B" Unitholders. Future distributions will depend on the levels of cash generated from operations, refinancings, property sales and the availability of cash reserves. At this time, the General Partner anticipates that cash distributions will be made during fiscal 1996. Item 6. Management's Discussion and Analysis or Plan of Operation This item should be read in conjunction with the consolidated financial statements and other items contained elsewhere in this report. Results of Operations The Partnership's net income for the year ended December 31, 1995, was $383,000 compared to a net loss of approximately $1,396,000 for the year ended December 31, 1994 (see Note D of the financial statements for a reconciliation of these amounts to the Partnership's federal taxable income). The increase in net income for the year ended December 31, 1995 is primarily attributable to the $612,000 casualty gain recorded for the fire at Shadow Brook Apartments, which destroyed twelve units and damaged twelve others. Also contributing to the increase in net income is an increase in rental income which resulted from increased rental rates during the year ended December 31, 1995. Net income also increased due to lower expenses for the year ended December 31, 1995 compared to the year ended December 31, 1994. Expenses decreased as a result of a $966,000 provision for possible losses recorded for Carlin Manor in 1994. No such provisions were deemed necessary for 1995. Offsetting the increase in income is a decrease in interest income due to lower investment balances for the year ended December 31, 1995, compared to the year ended December 31, 1994. Other income also decreased as a result of the receipt of approximately $56,000 in cash and stock in March 1994 as partial recovery of claims against Southmark Corporation's Chapter 11 bankruptcy proceeding which was included in other income for the year ended December 31, 1994. No additional judgements were granted on the Partnership's claims in 1995. The loss on disposal of property was the result of roof write-offs at the Hunt Club Apartments due to ongoing roof repairs. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of each of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expense. 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, 1995, the Partnership had unrestricted cash of approximately $1,234,000 versus approximately $850,000 at December 31, 1994. The increase in net cash provided by operating activities is primarily attributable to the increase in net income (as discussed above), an increase in other liabilities due to an increase in interest payable and unearned rental income and an increase in accrued taxes, which was partially offset by the casualty gain. Net cash provided by investing activities increased due to an increase in insurance proceeds due to the Shadow Brook fire and an increase in net proceeds from the sale of securities available for sale. The increases were partially offset by an increase in property improvements and replacements. Finally, net cash used in financing activities increased due to an increase in distributions paid. The Partnership has no material capital programs scheduled to be performed in 1996, although certain routine capital expenditures and maintenance expenses have been budgeted. These capital expenditures and maintenance expenses will be incurred only if cash is available from operations or is received from the capital reserve account. 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 $11,414,000, including interest payable, is amortized over varying periods and requires balloon payments in June 1997 and October 2000 at which time the properties will be refinanced or sold. For the year ended December 31, 1995, distributions of approximately $909,000 or $9.44 per "A" Unit were made to the "A" Unit limited partners. Matching distributions of approximately $9,000 were also made to the General Partner. Future cash distributions will depend on the levels of cash generated from operations, capital expenditure requirements, property sales and the availability of cash reserves. Item 7. Financial Statements MULTI-BENEFIT REALTY FUND '87-1 LIST OF FINANCIAL STATEMENTS Reports of Independent Auditors Consolidated Balance Sheet--December 31, 1995 Consolidated Statements of Operations--Years ended December 31, 1995 and 1994 Consolidated Statements of Changes in Partners' Capital (Deficit)--Years ended December 31, 1995 and 1994 Consolidated Statements of Cash Flows--Years ended December 31, 1995 and 1994 Notes to Consolidated Financial Statements Report of Ernst & Young LLP, Independent Auditors The Partners Multi-Benefit Realty Fund '87-1 We have audited the accompanying consolidated balance sheet of Multi-Benefit Realty Fund '87-1 as of December 31, 1995, and the related consolidated statements of operations, changes in partners capital (deficit) and cash flows for the year then ended. 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 audit. We conducted our audit 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 audit provides 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 Multi- Benefit Realty Fund '87-1 as of December 31, 1995, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. /s/ERNST & YOUNG LLP Greenville, South Carolina February 13, 1996 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Partners of Multi-Benefit Realty Fund '87-1: We have audited the accompanying consolidated statements of operations, partners' capital (deficit) and cash flows of Multi-Benefit Realty Fund '87-1 (a California limited partnership) for the year ended December 31, 1994. 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 audit. We conducted our audit 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the results of operations and cash flows of Multi-Benefit Realty Fund '87-1 for the year ended December 31, 1994, in conformity with generally accepted accounting principles. /s/ Arthur Andersen, LLP Dallas, Texas March 23, 1995 MULTI-BENEFIT REALTY FUND '87-1 CONSOLIDATED BALANCE SHEET (in thousands, except unit data) December 31, 1995 Assets Cash and cash equivalents: Unrestricted $ 1,234 Restricted - tenant security deposits 132 Securities available for sale 305 Other assets 610 Investment properties: Land $ 1,742 Buildings and related personal property 21,331 23,073 Less accumulated depreciation (9,020) 14,053 $ 16,334 Liabilities and Partners' Capital (Deficit) Liabilities Mortgage notes payable $ 11,331 Accrued taxes 263 Other liabilities 851 Partners' Capital (Deficit) General Partner $ (113) Limited Partner "A" Unitholders - 96,284 units outstanding 190 Limited Partner "B" Unitholders - 75,152 units outstanding 3,812 3,889 $ 16,334 See Accompanying Notes to Consolidated Financial Statements MULTI-BENEFIT REALTY FUND '87-1 CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except unit data)
Years Ended December 31, 1995 1994 Revenues: Rental income $ 4,530 $ 4,216 Other income 101 188 Total revenues 4,631 4,404 Expenses: Operating 2,543 2,544 General and administrative 203 185 Partnership management fees 82 45 Depreciation 959 991 Interest 1,056 1,069 Provision for possible loss -- 966 Total expenses 4,843 5,800 Casualty gain 612 -- Loss on disposal of property (17) -- Net income (loss) $ 383 $ (1,396) Net income (loss) allocated to general partner (1%) $ 4 $ (14) Net income (loss) allocated to limited partners (99%) 379 (1,382) $ 383 $ (1,396) Net income (loss) per "A" Unit $ 2.21 $ (8.06) Net income (loss) per "B" Unit $ 2.21 $ (8.06) See Accompanying Notes to Consolidated Financial Statements
MULTI-BENEFIT REALTY FUND '87-1 CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (in thousands, except unit data)
LIMITED PARTNERS Total Partners' General Capital Partner "A" Units "B" Units (Deficit) Original capital contributions $ 1 $ 9,706 $ 7,538 $ 17,245 Limited partnership units at December 31, 1995 and December 31, 1994 -- 96,284 75,152 171,436 Partners' capital (deficit) at December 31, 1993 $ (89) $ 2,162 $ 4,252 $ 6,325 Net loss for the year ended December 31, 1994 (14) (776) (606) (1,396) Distributions (5) (500) -- (505) Partners' capital (deficit) at December 31, 1994 $ (108) $ 886 $ 3,646 $ 4,424 Net income for the year ended December 31, 1995 4 213 166 383 Distributions for the year ended December 31, 1995 (9) (909) -- (918) Partners' capital (deficit) at December 31, 1995 $ (113) $ 190 $ 3,812 $ 3,889 See Accompanying Notes to Consolidated Financial Statements
MULTI-BENEFIT REALTY FUND '87-1 CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Years Ended December 31, 1995 1994 Cash flows from operating activities: Net income (loss) $ 383 $(1,396) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 959 991 Amortization of loan costs 43 43 Casualty gain (612) -- Loss on disposition of property 17 -- Provision for possible loss -- 966 Change in accounts: Restricted cash (132) -- Other assets (281) (113) Accrued taxes 17 (16) Other liabilities 312 150 Net cash provided by operating activities 706 625 Cash flows from investing activities: Property improvements and replacements (1,229) (64) Proceeds from sale of securities available for sale 3,447 646 Purchase of securities available for sale (2,305) (145) Net insurance proceeds from property damage 831 -- Net cash provided by investing activities 744 437 Cash flows from financing activities: Payments on mortgage notes payable (148) (148) Distributions paid (918) (505) Net cash used in financing activities (1,066) (653) Net increase in cash and cash equivalents 384 409 Cash and cash equivalents at beginning of period 850 441 Cash and cash equivalents at end of period $ 1,234 $ 850 Supplemental disclosure of cash flow information: Cash paid for interest $ 929 $ 1,027 See Accompanying Notes to Consolidated Financial Statements MULTI-BENEFIT REALTY FUND '87-1 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note A - Organization and Significant Accounting Policies Organization: Multi-Benefit Realty Fund '87-1 (the "Partnership ) was organized as a limited partnership under the laws of the State of California pursuant to a Certificate and Agreement of Limited Partnership filed September 8, 1986. The Partnership commenced operations on February 27, 1987, the date on which impound requirements were met. The Partnership operates three apartment properties located in the Mid-west and West. Upon the Partnership's formation in 1986, Consolidated Capital Equities Corporation ("CCEC"), a Colorado corporation, was the sole general partner of the Partnership and the Corporate Limited Partner, a wholly-owned subsidiary of CCEC, was the sole limited partner. In 1988, through a series of transactions, Southmark Corporation ("Southmark") acquired a 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. ("CEI"), acquired CCEC's general partner interest in the Partnership and in 15 other affiliated public limited partnerships (the "Affiliated Partnerships"), acquired the stock of the Corporate Limited Partner, 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 Unitholders in the Partnership and of the limited partners in each of the Affiliated Partnerships pursuant to a solicitation of the Unitholders dated August 10, 1990. As part of this solicitation, the Unitholders also approved an amendment to the Partnership Agreement to limit changes of control of the Partnership. All of CEI's outstanding stock is owned by GII Realty, Inc. In December 1994, the parent of GII Realty, Inc., entered into a transaction (the "Insignia Transaction") in which, among other things, MAE-ICC, Inc., a wholly owned subsidiary of Metropolitan Asset Enhancement, L.P. ("MAE"), 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, MAE-ICC, Inc. also acquired all of the outstanding stock of Partnership Services, Inc., an asset manager and a subsidiary of Insignia acquired all of the outstanding stock of Coventry Properties, Inc., a property manager. 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, MAE-ICC, Inc. exercised the remaining portion of its option to purchase all of the outstanding capital stock of GII Realty, Inc. held by Gordon Realty, Inc. Pursuant to the terms of the option, MAE-ICC, Inc. acquired the remaining 49.5% of the outstanding capital stock of GII Realty, Inc. Principles of Consolidation: The financial statements include all the accounts of the Partnership and its wholly owned partnership. All significant interpartnership balances have been eliminated. 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. Partners' Capital (Deficit): The Partnership has issued two classes of Units of Depositary Receipts ("Units"), "A" Units and "B" Units. The two classes of both are entitled to different rights and priorities as to cash distributions and partnership allocations. The Units represent economic rights attributable to the limited partnership interests in the Partnership and entitle the holders thereof ("Unitholders") to participate in certain allocations and distributions of the Partnership. The Partnership Agreement("Agreement") provides for the allocation of net income and net losses from operations for both financial and tax reporting purposes as follows: net profits are allocated 99% to the holders of "A" Units until they have been allocated income equal to their priority return, and 1% to the General Partner. The priority return represents 9% per annum return on invested capital for the Partnership's first fiscal year, 9.5% for the second year and 10% per annum thereafter. Additional net profits are allocated 1% to the General Partner and 99% to the Unitholders. Net losses are allocated 1% to the General Partner and 99% to the Unitholders until their capital accounts are depleted. Additional net losses are allocated to the General Partner. Distributable cash from operations is allocated 1% to the General Partner and 99% to the Unitholders with holders of "A" Units first receiving their priority return, then the balance is split equally between holders of "A" Units and "B" Units. The General Partner receives 1% of surplus funds and holders of "A" Units will receive their priority return, then both classes of Unitholders will receive a return of their invested capital. Any remainder will be allocated 10% to holders of "A" Units and 90% to holders of "B" Units. Cash and Cash Equivalents: Unrestricted - Unrestricted cash includes cash on hand and in banks, money market funds and U.S. Treasury Bills with original maturities less than 90 days. U.S. Treasury Notes with original maturities greater than 90 days are considered to be investments. At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits. Restricted cash - tenant security deposits - The Partnership requires security deposits from lessees for the duration of the lease and such deposits are considered restricted cash. Deposits are refunded when the tenant vacates, provided the tenant has not damaged its space and is current on its rental payments. Escrows for Taxes and Insurance: Funds, totaling approximately $208,000, which are included in other assets, are held by the Partnership and the mortgage holder and are designated for the payment of real estate taxes and insurance. Capital Replacement Reserve: In relation to the mortgage at Hunt Club, the mortgage lender has required a "replacement reserve' for certain capital improvements. At December 31, 1995, the balance was $88,498 and is included in other assets. Investment Properties: Prior to the fourth quarter of 1995, investment properties were carried at the lower of cost or estimated fair value, which was determined using the higher of the property's non-recourse debt amount, when applicable, or the net operating income of the investment property capitalized at a rate deemed reasonable for the type of property. During the fourth quarter of 1995 the Partnership adopted FASB Statement No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. The effect of adoption was not material. Investments: Securities available-for-sale: The General Partner determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Debt securities are classified as held-to-maturity when the Partnership has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in investment income. Interest on securities classified as held-to-maturity is included in investment income. Presently, all of the Partnership's investments are classified as available-for- sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in a separate component of partner's capital. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in investment income. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in investment income. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in investment income. Depreciation: Depreciation is provided by the straight-line method over the estimated lives of the apartment properties and related personal property. For Federal income tax purposes, the modified accelerated cost recovery method is used for depreciation of (1) real property additions over 27 1/2 years and (2) personal property additions over 5-15 years. Loan Costs: Loan costs of $151,167 are included in other assets and are being amortized on a straight-line basis over the life of the loans. Leases: The Partnership generally leases apartment units for twelve-month terms or less. The Partnership recognizes income as earned on its leases. In addition, management finds it necessary to offer rental concessions during particularly slow months or in response to heavy competition from other similar complexes in the area. Concessions are charged to expenses as incurred. Advertising: The Partnership expenses the costs of advertising as incurred. Advertising expense, included in operating expenses, was approximately $79,000 and $66,000 for the years ended December 31, 1995 and 1994, respectively. Fair Value: In 1995, the Partnership implemented Statement of Financial Accounting Standards No. 107, "Disclosure about Fair Value of Financial Instruments," which requires disclosure of fair value information about financial instruments for which it is practicable to estimate that value. The carrying amount of the Partnership's cash and cash equivalents approximates fair value due to short-term maturities. The Partnership estimates the fair value of its fixed rate mortgages by discounted cash flow analysis, based on estimated borrowing rates currently available to the Partnership. Note A - Organization and Significant Accounting Policies (continued) Reclassifications: Certain reclassifications have been made to the 1994 information to conform to the 1995 presentation. Note B - Investments Investments, stated at cost, consist of the following at December 31, 1995, (in thousands): Interest Face Maturity Rate Amount Cost Date First Union Corporation U.S. Treasury Note 7.38% $200 $197 05/15/96 First Union Corporation U.S. Treasury Note 7.88% 100 101 07/15/96 Southmark Corporation Redeemable Series A Preferred Stock N/A 7 7 N/A $305 The Partnership's investments are classified as available for sale. The General Partner believes that the market value of the investments is approximately the same as the cost. Note C - Mortgage Notes Payable The principal terms of mortgage notes payable are as follows (in thousands): Principal Monthly Principal Balance At Payment Stated Balance December 31, Including Interest Maturity Due At Property 1995 Interest Rate Date Maturity Hunt Club 1st mortgage $ 3,911 $ 32 8.30% 10/01/00 $3,575 Shadow Brook 1st mortgage 7,420 66 9.19% 06/01/97 7,253 Totals $11,331 $ 98 The estimated fair values of the Partnership's aggregate debt is approximately $11,502,000. This value represents a general approximation of possible value and is not necessarily indicative of the amount the Partnership may pay in actual market transactions. Note C - Mortgage Notes Payable (continued) The mortgage notes payable are non-recourse and are secured by pledge of all of the Partnership's apartment properties and by pledge of revenues from the apartment properties. Certain of the notes require prepayment penalties if repaid prior to maturity and prohibit resale of the properties subject to existing indebtedness. Scheduled principal payments of mortgage notes payable subsequent to December 31, 1995, are as follows (in thousands): 1996 $ 176 1997 7,369 1998 71 1999 77 2000 3,638 $11,331 Note D - Income Taxes The Partnership has received a ruling from the Internal Revenue Service that it will be classified as a partnership for Federal income tax purposes. Accordingly, no provision for income taxes is made in the financial statements of the Partnership. Taxable income or loss of the Partnership is reported in the income tax returns of its partners. The following is a reconciliation of reported net loss and Federal taxable loss: 1995 1994 Net income (loss) as reported $ 382,595 $(1,396,007) Add (deduct): Write-downs of fixed asset values -- 966,000 Deferred casualty gain (611,893) -- Depreciation differences 155,523 125,673 Change in prepaid rental 95,296 7,012 Other (88,584) 71 Federal taxable loss $ (67,063) $ (297,251) Federal taxable loss per limited partnership unit $ (.39) $ (1.72) Note D - Income Taxes (continued) The following is a reconciliation between the Partnership's reported amounts and Federal tax basis of net assets and liabilities: Net assets as reported $3,889,053 Buildings 2,031,354 Accumulated depreciation 752,941 Syndication fees 1,975,199 Other 171,520 Net assets - tax basis $8,820,067 Note E - Related Party Transactions Multi-Benefit Realty Fund '87-1 ("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 paid property management fees based upon collected gross rental revenues for property management services as noted below for the year ended December 31, 1995, and December 31, 1994, respectively. Such fees are included in operating expense on the statement of operations. For the year ended December 31, 1994, a portion of such property management fees were paid to property management companies for day-to-day property management services and a portion was paid to Partnership Services, Inc. ("PSI") for advisory services related to day-to-day property operations. Coventry Properties, Inc. ("Coventry"), an affiliate of the General Partner, provided day-to-day property management responsibilities for one of the Partnership's properties under the same management fee arrangement as the unaffiliated management companies. Affiliates of Insignia Financial Group, Inc. ("Insignia"), an affiliate of the General Partner, assumed day-to-day management responsibilities for all the Partnership's properties in late December 1994. Fees paid to affiliates of Insignia during the year ended December 31, 1995, and fees paid to Coventry and PSI during the year ended December 31, 1994, are reflected in the following table: For the Year Ended December 31, 1995 1994 (in thousands) Property management fees $223 $112 Partnership management fees 82 (1) 45(1) (1)The Agreement provides for a fee equal to 9% of distributable cash from operations (as defined in the Agreement) received by the limited partners be paid to the General Partner for executive and administrative management services. The Agreement also provides for reimbursement to the General Partner and its affiliates for costs incurred in connection with the administration of Partnership activities. Such reimbursements are included in general and administrative expense on the statement of operations. The General Partner and its current and former affiliates (including Coventry), received reimbursements as reflected in the following table: Note E - Related Party Transactions (continued) For the Year Ended December 31, 1995 1994 (in thousands) Reimbursement for services of affiliates $120 $97 On July 1, 1995, the Partnership began insuring 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 current agent assumed the financial obligations to the affiliate of the General Partner, who receives 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 is not significant. Note F - Commitments and Contingencies The Partnership is required by the Agreement to maintain working capital reserves of not less than 5% of Net Invested Capital, as defined in the Agreement. In the event expenditures are made from this reserve, operating revenue shall be allocated to such reserve to the extent necessary to maintain the foregoing level. Reserves, including cash and cash equivalents and securities available for sale totaling approximately $1.7 million, exceeded the reserve requirement of approximately $754,000 at December 31, 1995. The Partnership is unaware of any pending or outstanding litigation that is not of a routine nature. The General Partner believes that all such matters are adequately covered by insurance and will be resolved without a material adverse effect upon the business, financial condition, results of operations, or liquidity of the Partnership. Note G - Real Estate and Accumulated Depreciation
Investment Properties Initial cost (in thousands) To Partnership Cost Buildings Capitalized and Related (Written Down) Personal Subsequent to Description Encumbrances Land Property Acquisition Carlin Manor Apartments Columbus, Ohio $ -- $ 408 $ 6,582 $ (661) Hunt Club Apartments Indianapolis, Indiana 3,911 485 5,673 543 Shadow Brook Apartments West Valley City, Utah 7,420 961 8,263 819 Totals $ 11,331 $1,854 $20,518 $ 701
Note G - Real Estate and Accumulated Depreciation (continued)
Gross Amount At Which Carried At December 31, 1995 Buildings And Related Personal Accumulated Date of Date Depreciable Description Land Property Total Depreciation Construction Acquired Life-Years Carlin Manor Apartments Phase I Columbus, Ohio $ 296 $ 6,033 $ 6,329 $ 3,030 1967 11/87 5-30 Phase II 1972 Hunt Club Apartments Indianapolis, Indiana 485 6,216 6,701 2,959 1979 05/87 5-30 Shadow Brook Apartments West Valley City, Utah 961 9,082 10,043 3,031 1985 05/87 5-30 Totals $1,742 $21,331 $23,073 $9,020
Reconciliation of Investment Properties and Accumulated Depreciation" (in thousands): Years Ended December 31, 1995 1994 Real Estate Balance at beginning of year $22,208 $23,110 Property improvements 1,229 64 Provisions for possible loss -- (966) Disposals of property (364) -- Balance at End of Year $23,073 $22,208 Accumulated Depreciation Balance at beginning of year $ 8,188 $ 7,197 Additions charged to expense 959 991 Disposition of property (127) -- Balance at End of Year $ 9,020 $ 8,188 Note G - Real Estate and Accumulated Depreciation (continued) The aggregate cost of the real estate for Federal income tax purposes at December 31, 1995 and 1994 is $25,103,979 and $24,706,534. The accumulated depreciation taken for Federal income tax purposes at December 31, 1995 and 1994 is $8,267,091 and $7,463,533. Note H - Other Income In 1991, the Partnership (and simultaneously other affiliated partnerships) entered claims in Southmark's Chapter 11 bankruptcy proceeding. These claims related to Southmark's activities while it exercised control (directly, or indirectly through its affiliates) over the Partnership. The U.S. Bankruptcy Court set the Partnership's and the affiliated partnerships' allowed claim at $11 million, in the aggregate. In March 1994, the Partnership received $49,393 in cash, 901 shares of Southmark Corporation Redeemable Series A Preferred Stock and 6,591 shares of Southmark Corporation New Common Stock with an aggregate market value on the date of receipt of $6,631 representing the Partnership's share of the recovery, based on its pro rata share of the claims filed. Note I - Casualty Gain Shadow Brook Apartments experienced fire damage which destroyed twelve units and damaged twelve others. The fire resulted in a casualty gain of approximately $612,000. Note J - Provision for Possible Loss A property owned by the Partnership, Carlin Manor, experienced a decline in its estimated value during 1994 due to economic factors. Accordingly, the Partnership recorded a $966,000 provision for possible losses on the real estate in the year ended December 31, 1994. Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure As of May 3, 1995, Arthur Andersen LLP, the independent accountant previously engaged as the principal accountant to audit the financial statements of the Registrant was dismissed. As of the same date, the firm of Ernst & Young LLP was engaged to provide that service for the Registrant. The audit report of Arthur Andersen LLP on the financial statements of the Partnership as of and for the year ended December 31, 1994 did not contain any adverse opinion or disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles. During the Partnership's two most recent fiscal years and any subsequent interim period preceding the change, there were no disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the former accountant, would have caused it to make reference to the subject matter of the disagreements in connection with its report. PART III Item 9. Directors, Executive Officers, Promoters and Control Persons, Compliance with Section 16(a) of the Exchange Act The names of the directors and executive officers of ConCap Equities, Inc. ("CEI"), the Partnership's Managing General Partner as of December 31, 1995, their age and the nature of all positions with CEI presently held by them are as follows: NAME OF INDIVIDUAL POSITION IN CEI AGE Carroll D. Vinson President 55 William H. Jarrard, Jr. Vice President 49 John K. Lines Vice President/Secretary 36 Kelley M. Buechler Assistant Secretary 38 Robert D. Long, Jr. Chief Accounting Officer/ 28 Controller Carroll D. Vinson has been President of CEI since December 1994 and President of the MAE subsidiaries since August 1994. Prior to that, during 1993 to August 1994, Mr. Vinson was affiliated with Crisp, Hughes & Co. (a regional CPA firm) and engaged in various other investment and consulting activities. Briefly, in early 1993, Mr. Vinson served as President and Chief Executive Officer of Angeles Corporation, a real estate investment firm. From 1991 to 1993, Mr. Vinson was employed by Insignia in various capacities including Managing Director-President during 1991. From 1986 to 1990, Mr. Vinson was President and a Director of U.S. Shelter Corporation, a real estate services company which sold substantially all of its assets to Insignia in December 1990. William H. Jarrard, Jr. has been Vice President of CEI since December 1994, Vice President of the MAE subsidiaries since January 1992 and Managing Director - Asset Management and Partnership Administration of Insignia since January 1991. During the five years prior to joining Insignia in 1991, he served in a similar capacity for U.S. Shelter. Mr. Jarrard is a graduate of the University of South Carolina and a certified public accountant. John K. Lines has been Vice President and Secretary of CEI since December 1994, Secretary of the MAE subsidiaries since August 1994, General Counsel of Insignia since June 1994, and General Counsel and Secretary of Insignia since July 1994. From May 1993 until June 1994, Mr. Lines was the Assistant General Counsel and Vice President of Ocwen Financial Corporation in West Palm Beach, Florida. From October 1991 until April 1993, Mr. Lines was a Senior Attorney with Banc One Corporation in Columbus, Ohio. From May 1984 until October 1991, Mr. Lines was employed as an associate with Squire Sanders & Dempsey in Columbus, Ohio. Robert D. Long, Jr. has been Controller and Chief Accounting Officer of CEI since December 1994 and Chief Accounting Officer and Controller of the MAE subsidiaries since February 1994. Prior to joining MAE, he was an auditor for the State of Tennessee and was associated with the accounting firm of Harshman Lewis and Associates. He is a graduate of the University of Memphis. Kelley M. Buechler has been Assistant Secretary of CEI since December 1994, Assistant Secretary of the MAE subsidiaries since January 1992, and Assistant Secretary of Insignia since January 1991. During the five years prior to joining Insignia in 1991, she served in a similar capacity for U.S. Shelter. Ms. Buechler is a graduate of the University of North Carolina. Item 10. Executive Compensation No direct compensation was paid or payable by the Partnership to directors or officers (since it does not have any directors or officers) for the years ended December 31, 1995 and December 31, 1994. The Partnership has no plans to pay any such renumeration to any directors or officers of the General Partner in the future. Item 11. Security Ownership of Certain Beneficial Owners and Management (a) Security Ownership of Certain Beneficial Owners As of December 31, 1995, no other person was known to CEI to own of record or beneficially more than 5 percent (5%) of the Units of the Partnership. (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, 1995, 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 GII Realty, Inc. 100,000 100% One Insignia Financial Plaza P.O. Box 1089 Greenville, SC 29602 Item 12. Certain Relationships and Related Transactions Transactions with Current Management and Others Except for the transactions described below, neither CEI nor any of its directors, officers or associates, or any associates of any of them, has had any interest in any other transaction to which the Partnership is a party. Please refer to "Item 7 - Financial Statements and Supplementary Data," Note E - Related Party Transactions, for the amounts and items of permissible compensation and fees paid to the General Partner and its affiliates and other related parties for the last two years. The Registrant has paid property management fees based upon collected gross rental revenues for property management services as noted below for the years ended December 31, 1995 and 1994. For the year ended December 31, 1994, a portion of such property management fees were paid to property management companies for day-to-day property management services and a portion was paid to Partnership Services, Inc. ("PSI") for advisory services related to day-to-day property operations. Coventry Properties, Inc. ("Coventry"), an affiliate of the General Partner, provided day-to-day property management responsibilities for one of the Partnership's properties under the same management fee arrangement as the unaffiliated management companies. Affiliates of Insignia Financial Group, Inc. ("Insignia"), an affiliate of the General Partner, assumed day-to-day management responsibilities for all the Partnership's properties in late December 1994. All of the above referenced agreements with affiliates of CEI and related parties of the Partnership are subject to the conditions and limitations imposed by the Agreement. Litigation with Former Related Parties In 1991, the Partnership (and simultaneously each of the Affiliated Partnerships) entered claims in Southmark's Chapter 11 bankruptcy proceeding. These claims related to Southmark's activities while it exercised control (directly, or indirectly through its affiliates) over the Partnership. The Bankruptcy Court set the allowed amount for the Partnership's and the Affiliated Partnership's claim at $11 million, in aggregate. In March 1994, the Partnership received 901 shares of Southmark Corporation Redeemable Series A Preferred Stock and 6,591 shares of Southmark Corporation New Common Stock with an aggregate estimated market value on the date of receipt of $6,631 and $49,393 in cash representing the Partnership's share of the recovery based on its pro rata portion of claims filed. Item 13. Exhibits and Reports on Form 8-K (a) Exhibits: Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. (b) Reports on Form 8-K filed in the fourth quarter of fiscal 1995: A Form 8-K dated October 24, 1995, was filed reporting the purchase of the remaining outstanding capital stock of GII Realty, Inc. by MAE-ICC, Inc. MULTI-BENEFIT REALTY FUND '87-1 SIGNATURE PAGE Pursuant to the requirements of Section 13 or 15(d) 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. MULTI-BENEFIT REALTY FUND '87-1 By: CONCAP EQUITIES, INC. Its General Partner, March 21, 1996 By: /s/ Carroll D. Vinson Date Carroll D. Vinson President March 21, 1996 By: /s/ Robert D. Long, Jr. Date Robert D. Long, Jr. Controller, Principal Accounting Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. March 21, 1996 By: /s/ Carroll D. Vinson Date Carroll D. Vinson Director and President March 21, 1996 By: /s/ Robert D. Long, Jr. Date Robert D. Long, Jr. Controller, Principal Accounting Officer EXHIBIT INDEX S-K REFERENCE SEQUENTIAL NUMBER DOCUMENT DESCRIPTION PAGE NUMBER 3 Certificate of Limited Partnership, N/A as amended to date. 4 Depositary Agreement (Incorporated N/A by reference to Registration State- ment of Registrant (File No. 33-8908) filed December 10, 1986, as amended to date). 10.1 Property Management Agreement No. 310 N/A 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). 10.2 Bill of Sale and Assignment dated N/A 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). 10.3 Assignment and Assumption Agreement dated N/A 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). 10.4 Assignment and Agreement as to Certain N/A Property Management Services dated October 23, 1990, by and between CCMLP and ConCap Capital Company (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1990). 10.5 Assignment and Assumption Agreement dated N/A October 23, 1990, by and between CCMLP and Metro ConCap, Inc. (300 Series of Property Management Contracts) (Incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 1990). S-K REFERENCE SEQUENTIAL NUMBER DOCUMENT DESCRIPTION PAGE NUMBER 10.6 Construction Management Cost Reimbursement N/A Agreement dated January 1, 1991, by and between the Partnership and Metro ConCap, Inc. (Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1991). 10.9 Construction Management Cost Reimbursement N/A Agreement dated January 1, 1991, by and between the Partnership and The Hayman Company. (Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1991). 10.10 Investor Services Agreement dated October N/A 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). 10.11 Assignment and Assumption Agreement N/A (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). 10.12 Letter of Notice dated December 20, N/A 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). 10.13 Financial Services Agreement dated October N/A 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). 10.14 Assignment and Assumption Agreement N/A (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). S-K REFERENCE SEQUENTIAL NUMBER DOCUMENT DESCRIPTION PAGE NUMBER 10.15 Letter of Notice dated December 20, N/A 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). 10.16 Property Management Agreement No. 518 N/A dated June 1, 1993, by and between the Partnership and Coventry Management, Inc. 10.17 Assignment and Assumption Agreement N/A (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). 10.18 Letter dated December 8, 1994 reporting a N/A change in control of the General partner of the Registrant. (Incorporated by reference to Form 8-K dated December 8, 1994). 11 Statement regarding computation of 19 Net Income per Unit of Depositary Receipt (Incorporated by reference to Note 5 of Item 8 - Financial State- ments of this Form 10-K) 16 Letter, Dated August 12, 1992, from N/A Ernst & Young to the Securities and Exchange Commission regarding change in certifying accountant. (Incorporated by reference to Form 8-K dated August 6, 1992) 16.1 Letter dated May 3, 1995, from Arthur N/A Anderson to the Securities and Exchange Commission regarding change in Certifying Accountant. (Incorporated by reference to Form 8-K dated May 3, 1995). 27 Financial Data Schedule is filed as an Exhibit to this report. EX-27 2
5 This schedule contains summary financial information extracted from Multi Benefit Realty Fund '87-1 1995 Year-End 10-KSB and is qualified in its entirety by reference to such 10-KSB filing. 0000802200 MULTI BENEFIT REALTY FUND '87-1 1,000 12-MOS DEC-31-1995 DEC-31-1995 1,234 305 0 0 0 0 23,073 9,020 16,334 0 11,331 0 0 0 3,889 16,334 0 4,631 0 0 4,843 0 1,056 0 0 0 0 0 0 383 2.21 0 The Registrant has an unclassified balance sheet.
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