National Property Investors 6 10-Q 15 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	NATIONAL PROPERTY INVESTORS 6
Entity Central Index Key	708870
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	-19
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Outstanding Limited Partnership Units	109,446

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Assets
Cash and cash equivalents	$15,652	$215
Receivables and deposits	176	446
Other assets	0	631
Investment property:
Land	0	1,366
Buildings and related personal property	0	30,579
Total investment property	0	31,945
Less accumulated depreciation	0	-24,090
Investment property, net	0	7,855
Total assets	15,828	9,147
Liabilities related to assets held for sale:
Accounts payable	62	62
Tenant security deposit liabilities	0	218
Due to affiliates	12,778	11,782
Other liabilities	161	363
Mortgage notes payable	0	22,638
Total liabilities	13,001	35,063
Partners' Capital (Deficit)
General partner	-519	-806
Limited partners	3,346	-25,110
Total partners’ capital (deficit)	2,827	-25,916
Total liabilities and partners’ capital (deficit)	$15,828	$9,147

Statements_of_Discontinued_Ope

Statements of Discontinued Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Income (loss) from continuing operations	$0	$0
Revenues:
Rental income	1,131	1,131
Other income	137	133
Total revenues	1,268	1,264
Expenses:
Operating	730	492
General and administrative	15	17
Depreciation	295	327
Interest	543	538
Property taxes	89	86
Incentive compensation fee	919	0
Loss on extinguishment of debt	5,373	0
Total expenses	7,964	1,460
Casualty gain	130	0
Gain from sale of discontinued operations	35,309	0
Income (loss) from discontinued operations	28,743	-196
Net income (loss)	28,743	-196
Net income (loss) allocated to general partner (1%)	287	-2
Net income (loss) allocated to limited partners (99%)	$28,456	($194)
Income (loss) from continuing operations per limited partnership unit	$0	$0
Income (loss) from discontinued operations per limited partnership unit	$260	($1.77)
Net income (loss) per limited partnership unit	$260	($1.77)

Statement_of_Changes_in_Partne

Statement of Changes in Partners' Deficit (Unaudited) (USD $)	Total	General Partner [Member]	Limited Partner [Member]
In Thousands, unless otherwise specified
Partners' deficit at December 31, 2014 at Dec. 31, 2014	($25,916)	($806)	($25,110)
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income for the three months ended March 31, 2015	28,743	287	28,456
Partners' (deficit) capital at March 31, 2015 at Mar. 31, 2015	$2,827	($519)	$3,346

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$28,743	($196)
Adjustments to reconcile net income (loss) to net cash provided
Gain on sale of discontinued operations	-35,309	0
Depreciation	295	327
Amortization of loan costs	39	10
Change in accounts:
Receivables and deposits	270	-11
Other assets	557	79
Accounts payable	0	47
Tenant security deposit liabilities	-218	15
Due to affiliates	996	-23
Other liabilities	-276	-21
Net cash used in operating activities	-4,903	227
Cash flows used in investing activities:
Net proceeds from sale of discontinued operations	43,210	0
Property improvements and replacements	-232	-60
Net cash provided by investing activities	42,978	-60
Cash flows used in financing activities:
Payments on mortgage notes payable	-22,638	-100
Net increase in cash and cash equivalents	15,437	67
Cash and cash equivalents at beginning of period	215	261
Cash and cash equivalents at end of period	15,652	328
Supplemental disclosure of cash flow information:
Cash paid for interest	582	388
Supplemental disclosure of non-cash activity:
Property improvements and replacements included in accounts payable	$0	$30

Basis_of_Presentation_Notes

Basis of Presentation (Notes)	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note A – Basis of Presentation
	The accompanying unaudited financial statements of National Property Investors 6 (the "Partnership" or "Registrant") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of NPI Equity Investments, Inc. (the "Managing General Partner"), all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The Managing General Partner is an affiliate of Apartment Investment and Management Company ("Aimco"), a publicly traded real estate investment trust.
	At March 31, 2015 and December 31, 2014, the Partnership had outstanding 109,446 and 109,496 units of limited partnership interest, respectively. Net income or loss per Limited Partnership Unit is computed by dividing the net income or loss allocated to the limited partners by the number of Limited Partnership Units outstanding at the beginning of the corresponding period.
	As discussed in Note C, the Partnership sold its sole investment property on March 31, 2015, and, in accordance with the terms of its Partnership Agreement, has commenced dissolution of the Partnership, which includes repayment of outstanding advances to an affiliate of the Managing General Partner and distribution of remaining amounts available for distribution to the partners.
	The Partnership’s management evaluated subsequent events through the time this Quarterly Report on Form 10-Q was filed.
	Certain reclassifications have been made to the 2014 balances to conform to the 2015 presentation, specifically related to reflecting the discontinued operations and held for sale presentations.

Transactions_With_Affiliated_P

Transactions With Affiliated Parties (Notes)	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
Transactions with Affiliates	Note B - Transactions with Affiliated Parties
	The Partnership has no employees and depends on the Managing General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for certain payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership.
	Affiliates of the Managing General Partner receive 5% of gross receipts from the Partnership's property as compensation for providing property management services. The Partnership paid to such affiliates approximately $65,000 and $63,000 for the three months ended March 31, 2015 and 2014, respectively, which are included in operating expenses.
	Affiliates of the Managing General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $17,000 and $12,000 for the three months ended March 31, 2015 and 2014, respectively, which is included in general and administrative expenses or capitalized as part of investment property. The portion of these reimbursements capitalized as part of investment property during the three months ended March 31, 2015 and 2014, were comprised of construction management service fees totaling approximately $15,000 and $3,000, respectively.
	As compensation for services rendered in managing the Partnership, the Managing General Partner is entitled to receive Partnership management fees in conjunction with distributions of cash from operations, subject to certain limitations. No such Partnership management fees were earned or paid during the three months ended March 31, 2015 or 2014.
	The Partnership may receive advances of funds from AIMCO Properties, L.P., an affiliate of the Managing General Partner and the holder of a majority of the beneficial interest of the Partnership. There were no such advances received during the three months ended March 31, 2015 and 2014. The advances bear interest at the prime rate plus 2% (5.25% at March 31, 2015) per annum. Interest expense was approximately $153,000 and $140,000 for the three months ended March 31, 2015 and 2014, respectively. At March 31, 2015 and December 31, 2014, the total advances and accrued interest owed to AIMCO Properties, L.P. was approximately $11,859,000 and $11,782,000, respectively, and is included in Due to Affiliates in the accompanying balance sheets. Subsequent to March 31, 2015, using proceeds from the sale of its investment property, the Partnership repaid the outstanding principal and accrued interest due to AIMCO Properties, L.P. The Partnership may receive additional advances of funds from AIMCO Properties, L.P. although AIMCO Properties, L.P. is not obligated to provide such advances.
	Upon the sale of the Partnership’s property, the Managing General Partner was entitled to an Incentive Compensation Fee equal to 3% of the difference between the sales price of the property and the appraised value for such property at February 1, 1992. Payment of the Incentive Compensation Fee is subordinated to the receipt by the limited partners, of: (a) distributions from capital transaction proceeds of an amount equal to their appraised investment in the Partnership at February 1, 1992, and (b) distributions from all sources (capital transactions as well as cash flow) of an amount equal to six percent (6%) per annum cumulative, non-compounded, on their appraised investment in the Partnership at February 1, 1992. These preferences were satisfied and in connection with the sale of the Partnership’s property, the Partnership accrued an Incentive Compensation Fee of approximately $919,000, which is included in Due to Affiliates in the Partnership’s balance sheet as of March 31, 2015, and which was subsequently paid in April.
	The Partnership insures its property up to certain limits through coverage provided by Aimco which is generally self-insured for a portion of losses and liabilities related to workers’ compensation, property casualty, general liability, and vehicle liability. The Partnership insures its property above the Aimco limits through insurance policies obtained by Aimco from insurers unaffiliated with the Managing General Partner. During the three months ended March 31, 2015 and 2014, the Partnership was charged by Aimco and its affiliates approximately $48,000 and $64,000, respectively, for hazard insurance coverage and fees associated with policy claims administration.

Disposition_of_Investment_Prop

Disposition of Investment Property and Discontinued Operations (Notes)	3 Months Ended
	Mar. 31, 2015
Disposal Groups, Including Discontinue Operations Disclosure [Abstract]
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	Note C – Disposition of Investment Property and Discontinued Operations
	On March 31, 2015, the Partnership sold Colony of Kenilworth, its sole investment property, to a third party for a total sales price of $44,200,000. The net proceeds realized by the Partnership were approximately $43,210,000, after payment of closing costs of $987,000. The Partnership recognized a gain of approximately $35,309,000 as a result of the sale.
	In connection with the sale, the Partnership repaid the outstanding balances of property loans encumbering the property, totaling approximately $22,530,000. In connection with the loan repayments, the Partnership recognized a loss on extinguishment of debt of approximately $5,373,000, consisting of approximately $5,161,000 of prepayment penalties, as well as the write off of unamortized deferred financing costs.
	In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08. ASU 2014-08 revised the definition of, and the requirements for reporting, a "discontinued operation." Specifically, ASU 2014-08 revised the reporting requirements to only allow a component of an entity, or group of components of an entity, to be reported in discontinued operations if their disposal represents a “strategic shift that has (or will have) a major effect on an entity’s operations and financial results.”
	The Partnership adopted the provisions of ASU 2014-08 during the three months ended March 31, 2015, and the Partnership’s management believes the Partnership’s disposition of its sole investment property meets the criteria of a discontinued operation. Accordingly, the Partnership has presented its results of operations for both the three months ended March 31, 2015 and 2014, all of which relate to the operations of the disposed property, as discontinued operations within the accompanying Statements of Discontinued Operations. Additionally, the Partnership’s assets and liabilities have been reclassified as assets held for sale and liabilities related to assets held for sale.

Contingencies_Notes

Contingencies (Notes)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note D – Contingencies
	The Partnership is unaware of any pending or outstanding litigation matters involving it or its investment property that are not of a routine nature arising in the ordinary course of business.
	Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain potentially hazardous materials present on a property, including lead-based paint, asbestos, polychlorinated biphenyls, petroleum-based fuels, and other miscellaneous materials. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of such materials. The presence of, or the failure to manage or remedy properly, these materials may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the improper management of these materials on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of these materials through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of these materials is potentially liable under such laws for the proper operation of the disposal facility. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of its property, the Partnership could potentially be responsible for environmental liabilities or costs associated with its property.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited financial statements of National Property Investors 6 (the "Partnership" or "Registrant") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of NPI Equity Investments, Inc. (the "Managing General Partner"), all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The Managing General Partner is an affiliate of Apartment Investment and Management Company ("Aimco"), a publicly traded real estate investment trust.
	At March 31, 2015 and December 31, 2014, the Partnership had outstanding 109,446 and 109,496 units of limited partnership interest, respectively. Net income or loss per Limited Partnership Unit is computed by dividing the net income or loss allocated to the limited partners by the number of Limited Partnership Units outstanding at the beginning of the corresponding period.
	As discussed in Note C, the Partnership sold its sole investment property on March 31, 2015, and, in accordance with the terms of its Partnership Agreement, has commenced dissolution of the Partnership, which includes repayment of outstanding advances to an affiliate of the Managing General Partner and distribution of remaining amounts available for distribution to the partners.
	The Partnership’s management evaluated subsequent events through the time this Quarterly Report on Form 10-Q was filed.
	Certain reclassifications have been made to the 2014 balances to conform to the 2015 presentation, specifically related to reflecting the discontinued operations and held for sale presentations.

Basis_of_Presentation_Details

Basis of Presentation (Details)	Mar. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Outstanding Limited Partnership Units (in shares)	109,446	109,496

Transactions_With_Affiliated_P1

Transactions With Affiliated Parties (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transactions [Abstract]
Property management fee percentage - Related Party	5.00%
Property management fees - Related Party	$65,000	$63,000
Accountable administrative expense reimbursement - Related Party	17,000	12,000
Construction management service reimbursements capitalized - Related Party	15,000	3,000
General partner reimbursement fees during period		0
Partnership management fees earned or paid to managing general partner	0	0
Advances of funds from affiliate of managing general partner	0	0
Basis Spread on advances from affiliate of Managing General Partner	2.00%
Total Interest Rate on advances from affiliate of managing general partner	5.25%
Interest expense on advances - Related Party	153,000	140,000
Unpaid advances & accrued interest - Related Party	11,859,000		11,782,000
Incentive Compensation Fee percentage	3.00%
Percentage of cumulative, non-compounded interest on the appraised investment for incentive management fee	6.00%
Incentive compensation fee	919,000
Insurance expense - Related Party	$48,000	$64,000,000

Disposition_of_Investment_Prop1

Disposition of Investment Property and Discontinued Operations (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Disposal Groups, Including Discontinued Operations Disclosure [Abstract]
Sales price of real estate	$44,200
Net proceeds from sale of discontinued operations	43,210	0
Noncash Commission and Closing Costs	987
Gain from sale of discontinued operations	35,309	0
Payments of Debt Extinguishment Costs	22,530
Loss on extinguishment of debt	5,373
Prepayment Penalties Associated With Loans	$5,161