Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information: | ' |
Entity Registrant Name | 'CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES 2 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Entity Central Index Key | '0000719184 |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 907,143.60 |
Entity Filer Category | 'Smaller Reporting Company |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Well-known Seasoned Issuer | 'No |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets held for sale: | ' | ' |
Cash and cash equivalents | $157 | $143 |
Receivables and deposits | 121 | 126 |
Other assets | 46 | 85 |
Investment property: | ' | ' |
Land | 3,660 | 3,660 |
Buildings and related personal property | 10,129 | 10,158 |
Total investment property | 13,789 | 13,818 |
Less accumulated depreciation | -5,431 | -5,053 |
Investment property, net | 8,358 | 8,765 |
Total assets | 8,682 | 9,119 |
Liabilities related to assets held for sale: | ' | ' |
Accounts payable | 41 | 34 |
Tenant security deposit liabilities | 73 | 63 |
Distributions payable | 141 | 141 |
Due to affiliates | 658 | 593 |
Accrued property taxes | 262 | 324 |
Other liabilities | 180 | 190 |
Mortgage note payable | 10,255 | 10,391 |
Total liabilities | 11,610 | 11,736 |
Partners' Deficit | ' | ' |
General partner | -482 | -479 |
Limited partners | -2,446 | -2,138 |
Total partners' deficit | -2,928 | -2,617 |
Total liabilities and partners' deficit | $8,682 | $9,119 |
Statements_of_Discontinued_Ope
Statements of Discontinued Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statements of Operations | ' | ' | ' | ' |
Loss from continuing operations | $0 | $0 | $0 | $0 |
Rental income | 559 | 551 | 1,674 | 1,626 |
Other income | 124 | 98 | 323 | 272 |
Total revenues | 683 | 649 | 1,997 | 1,898 |
Operating | 276 | 228 | 789 | 714 |
General and administrative | 63 | 84 | 206 | 258 |
Depreciation | 163 | 165 | 490 | 492 |
Interest | 179 | 181 | 537 | 541 |
Property taxes | 87 | 81 | 286 | 253 |
Total expenses | 768 | 739 | 2,308 | 2,258 |
Loss before income from merger of affiliated partnership | -85 | -90 | -311 | -360 |
Income from merger of affiliated partnership | 0 | 0 | 0 | 24 |
Net loss | -85 | -90 | -311 | -336 |
Net loss allocated to general partner (1%) | -1 | -1 | -3 | -3 |
Net loss allocated to limited partners (Series A) (99%) | ($84) | ($89) | ($308) | ($333) |
Net loss per Series A unit | ($0.09) | ($0.10) | ($0.34) | ($0.37) |
Statement_of_Shareholders_Defi
Statement of Shareholders Deficit (Unaudited) (USD $) | General Partner | Limited Partners Series A | Total |
In Thousands | |||
Partners' deficit, beginning balance at Dec. 31, 2012 | ($479) | ($2,138) | ($2,617) |
Net loss | -3 | -308 | -311 |
Partners' deficit, ending balance at Sep. 30, 2013 | ($482) | ($2,446) | ($2,928) |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($311) | ($336) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation | 490 | 492 |
Amortization of loan costs | 30 | 30 |
Bad debt expense | 49 | 38 |
Income from merger of affiliated partnership | 0 | -24 |
Change in accounts: | ' | ' |
Other assets | 9 | 0 |
Receivables and deposits | -44 | -30 |
Accounts payable | 20 | -1 |
Accrued property taxes | -62 | -63 |
Due to affiliates | -8 | 178 |
Tenant security deposit liabilities | 10 | 9 |
Other liabilities | -10 | 25 |
Net cash provided by operating activities | 173 | 318 |
Cash flows from investing activities: | ' | ' |
Property improvements and replacements | -96 | -265 |
Proceeds from merger of affiliated partnership | 0 | 24 |
Net cash used in investing activities | -96 | -241 |
Cash flows from financing activities: | ' | ' |
Principal payments on mortgage note payable | -136 | -128 |
Advances from affiliate | 95 | 110 |
Repayment of advances from affiliate | -22 | 0 |
Net cash used in financing activities | -63 | -18 |
Net increase in cash and cash equivalents | 14 | 59 |
Cash and cash equivalents at beginning of period | 143 | 79 |
Cash and cash equivalents at end of period | 157 | 138 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 496 | 486 |
Supplemental disclosure of non-cash activity: | ' | ' |
Property improvements and replacements included in accounts payable | $0 | $12 |
Note_A_Basis_of_Presentation
Note A - Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note A - Basis of Presentation | ' |
Note A – Basis of Presentation | |
The accompanying unaudited financial statements of Consolidated Capital Institutional Properties/2, LP (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 ConCap Equities, Inc. (the "General Partner"), all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The General Partner is a subsidiary of Apartment Investment and Management Company ("Aimco"), a publicly traded real estate investment trust. Operating results for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2013. 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, 2012. The balance sheet at December 31, 2012 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, 2012. | |
At September 30, 2013 and December 31, 2012, the Partnership had outstanding 907,143.60 limited partnership units. | |
Certain reclassifications have been made to the 2012 balances to conform to the 2013 presentation. | |
The Partnership’s management evaluated subsequent events through the time this Quarterly Report on Form 10-Q was filed. | |
Partnership Termination | |
The Partnership Agreement provides that the Partnership is to terminate on December 31, 2013 unless terminated prior to such date. Since the Partnership’s term will expire on December 31, 2013 and the term cannot be extended, the General Partner began marketing the Partnership’s investment property for sale in 2013. | |
The respective assets and liabilities of Highcrest Townhomes met all criteria to be classified as held for sale as of September 30, 2013 and December 31, 2012. Those respective assets and liabilities are measured at their carrying value as the carrying value is lower than the fair value less costs to sell. The accompanying statements of discontinued operations for the three and nine months ended September 30, 2013 and 2012 are presented to reflect the operations of Highcrest Townhomes as discontinued operations. On October 30, 2013, the Partnership sold Highcrest Townhomes to a third party for a total sales price of $20,175,000. Subsequent to the sale, the Partnership commenced the liquidation process and plans to have that process completed no later than June 2014. | |
Note_B_Transactions_With_Affil
Note B - Transactions With Affiliated Parties | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note B - Transactions With Affiliated Parties | ' |
Note B – Transactions with Affiliated Parties | |
The Partnership has no employees and depends on the 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 reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. | |
Affiliates of the 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 $99,000 and $93,000 for the nine months ended September 30, 2013 and 2012, respectively, which are included in operating expenses. | |
An affiliate of the General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $95,000 and $180,000 for the nine months ended September 30, 2013 and 2012, respectively, which is included in general and administrative expenses and investment property. The portion of these reimbursements included in investment property for the nine months ended September 30, 2013 and 2012 are construction management services provided by an affiliate of the General Partner of approximately $3,000 and $28,000, respectively. At September 30, 2013 and December 31, 2012, the Partnership owed approximately $321,000 and $344,000, respectively, for accountable administrative expenses, which is included in due to affiliates. Subsequent to September 30, 2013, the Partnership paid the outstanding balance of accountable administrative expenses with proceeds received from the sale of Highcrest Townhomes. | |
Pursuant to the Partnership Agreement, AIMCO Properties, L.P., an affiliate of the General Partner, advanced the Partnership approximately $95,000 and $110,000 during the nine months ended September 30, 2013 and 2012, respectively, to fund real estate taxes at Highcrest Townhomes. AIMCO Properties, L.P. charges interest on advances under the terms permitted by the Partnership Agreement. The interest rates charged on the outstanding advances made to the Partnership range from the prime rate plus 2% to a variable rate based on the prime rate plus a market rate adjustment for similar type loans. Affiliates of the General Partner review the market rate adjustment quarterly. The interest rate on the outstanding advances at September 30, 2013 was 10.08%. Interest expense was approximately $18,000 and $19,000 for the nine months ended September 30, 2013 and 2012, respectively. During the nine months ended September 30, 2013, the Partnership repaid advances and accrued interest of approximately $25,000. No such payments were made during the nine months ended September 30, 2012. At September 30, 2013 and December 31, 2012, the amount of outstanding advances and accrued interest due to AIMCO Properties, L.P. was approximately $337,000 and $249,000, respectively, and are included in due to affiliates. Subsequent to September 30, 2013, the Partnership repaid the total outstanding advances and accrued interest with proceeds received from the sale of Highcrest Townhomes. | |
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 General Partner. During the nine months ended September 30, 2013, the Partnership was charged by Aimco and its affiliates approximately $12,000 for hazard insurance coverage and fees associated with policy claims administration. Additional charges will be incurred by the Partnership during 2013 as other insurance policies renew later in the year. The Partnership was charged by Aimco and its affiliates approximately $29,000 for insurance coverage and fees associated with policy claims administration during the year ended December 31, 2012. |
Note_C_Investment_in_Affiliate
Note C - Investment in Affiliated Partnership | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note C - Investment in Affiliated Partnership | ' |
Note C – Investment in Affiliated Partnership | |
The Partnership had an investment as a special limited partner in an affiliated partnership, Consolidated Capital Properties IV. This investment was accounted for using the equity method of accounting. Distributions from the affiliated partnership were accounted for as a reduction of the investment balance. When the investment balance had been reduced to zero, subsequent distributions received would be recognized as income. | |
During the nine months ended September 30, 2012, the affiliated partnership merged with affiliates of the General Partner. As a result of the completion of the merger, the Partnership received approximately $24,000 as consideration for its special limited partnership interest, which is reflected as income from merger of affiliated partnership for the nine months ended September 30, 2012, as the Partnership’s investment in the affiliated partnership was zero at the time of the merger. |
Note_D_Fair_Value_of_Financial
Note D - Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note D - Fair Value of Financial Instruments | ' |
Note D – Fair Value of Financial Instruments | |
Financial Accounting Standards Board Accounting Standards Codification Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Partnership is required to classify these fair value measurements into one of three categories, based on the nature of the inputs used in the fair value measurement. Level 1 of the hierarchy includes fair value measurements based on unadjusted quoted prices in active markets for identical assets or liabilities the Partnership can access at the measurement date. Level 2 includes fair value measurements based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 includes fair value measurements based on unobservable inputs. The classification of fair value measurements is subjective and generally accepted accounting principles requires the Partnership to disclose more detailed information regarding those fair value measurements classified within the lower levels of the hierarchy. The Partnership believes that the carrying amount of its financial instruments (except for the mortgage note payable) approximates its fair value due to the short-term maturity of these instruments. The Partnership estimates the fair value of its mortgage note payable by discounting future cash flows using a discount rate commensurate with that currently believed to be available to the Partnership for similar term, mortgage notes payable. The Partnership has classified this fair value measurement within Level 2 of the fair value hierarchy. At September 30, 2013, the fair value of the Partnership's mortgage note payable at the Partnership's incremental borrowing rate was approximately $11,091,000. |
Note_E_Contingencies
Note E - Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note E - Contingencies | ' |
Note E – 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. |
Note_F_Investment_Property
Note F - Investment Property | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note F - Investment Property | ' |
Note F – Investment Property | |
During the nine months ended September 30, 2013, the Partnership retired and wrote-off property improvements and replacements no longer being used that had a cost basis of approximately $112,000 and accumulated depreciation of approximately $112,000. |
Note_G_Subsequent_Event
Note G - Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note G - Subsequent Event | ' |
Note G – Subsequent Event | |
On October 30, 2013, the Partnership sold Highcrest Townhomes, its sole investment property, to a third party for a total sales price of $20,175,000. The net proceeds realized by the Partnership were approximately $19,878,000 after payment of closing costs of approximately $297,000. The Partnership used approximately $10,240,000 to repay the mortgage encumbering the property. The Partnership anticipates recognizing a gain, during the fourth quarter of 2013, of approximately $11,441,000 as a result of the sale. In addition, the Partnership anticipates recognizing a loss on extinguishment of debt, during the fourth quarter of 2013, of approximately $2,000,000 as a result of the write off of unamortized loan costs and payment of a prepayment penalty of approximately $1,993,000. Due to the sale of its sole investment property, the Partnership expects to liquidate by June 30, 2014. Subsequent to September 30, 2013, the Partnership distributed approximately $6,275,000 of proceeds from the sale to its partners (approximately $6.92 per Series A limited partnership unit). |
Note_A_Basis_of_Presentation_P
Note A - Basis of Presentation: Partnership Termination (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Partnership Termination | ' |
Partnership Termination | |
The Partnership Agreement provides that the Partnership is to terminate on December 31, 2013 unless terminated prior to such date. Since the Partnership’s term will expire on December 31, 2013 and the term cannot be extended, the General Partner began marketing the Partnership’s investment property for sale in 2013. | |
The respective assets and liabilities of Highcrest Townhomes met all criteria to be classified as held for sale as of September 30, 2013 and December 31, 2012. Those respective assets and liabilities are measured at their carrying value as the carrying value is lower than the fair value less costs to sell. The accompanying statements of discontinued operations for the three and nine months ended September 30, 2013 and 2012 are presented to reflect the operations of Highcrest Townhomes as discontinued operations. On October 30, 2013, the Partnership sold Highcrest Townhomes to a third party for a total sales price of $20,175,000. Subsequent to the sale, the Partnership commenced the liquidation process and plans to have that process completed no later than June 2014. |
Note_A_Basis_of_Presentation_D
Note A - Basis of Presentation (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Outstanding Limited Partnership Units | 907,143.60 | 907,143.60 |
Note_A_Basis_of_Presentation_P1
Note A - Basis of Presentation: Partnership Termination (Details) (USD $) | Sep. 30, 2013 |
Details | ' |
Highcrest Townhomes - asset held for sale - sale price | $20,175,000 |
Note_B_Transactions_With_Affil1
Note B - Transactions With Affiliated Parties (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Details | ' | ' | ' |
Property management fees - Related Party | $99,000 | $93,000 | ' |
Accountable administrative expense reimbursement - Related Party | 95,000 | 180,000 | ' |
Construction management service reimbursements capitalized - Related Party | 3,000 | 28,000 | ' |
Unpaid reimbursements owed - Related Party | 321,000 | ' | 344,000 |
Advances received from affiliates - Related Party | 95,000 | 110,000 | ' |
Interest expense on advances - Related Party | 18,000 | 19,000 | ' |
Repayment of advances & accrued interest - Related Party | 25,000 | ' | ' |
Unpaid advances & accrued interest - Related Party | 337,000 | ' | 249,000 |
Insurance expense - Related Party | $12,000 | ' | $29,000 |
Note_C_Investment_in_Affiliate1
Note C - Investment in Affiliated Partnership (Details) (USD $) | 9 Months Ended |
Sep. 30, 2012 | |
Details | ' |
Merger of Affiliated Partnership - Income received | $24,000 |
Note_D_Fair_Value_of_Financial1
Note D - Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 |
Details | ' |
Fair value mortgage notes - Level 2 | $11,091,000 |
Note_F_Investment_Property_Det
Note F - Investment Property (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Details | ' |
Retired property improvements and replacements cost basis | $112,000 |
Retired property improvements and replacements accumulated depreciation | $112,000 |
Note_G_Subsequent_Event_Detail
Note G - Subsequent Event (Details) (USD $) | Sep. 30, 2013 |
Details | ' |
Sub Event - Highcrest Townhomes sale price Oct 2013 | $20,175,000 |
Sub Event - Highcrest Townhomes net proceeds | 19,878,000 |
Sub Event - Highcrest Townhomes closing costs | 297,000 |
Sub Event - Highcrest Townhomes mortgages repaid | 10,240,000 |
Sub Event - Highcrest Townhomes Q4 2013 estimated gain | 11,441,000 |
Sub Event - Highcrest Townhomes Q4 2013 loss on debt extinguishment | 2,000,000 |
Sub Event - Highcrest Townhomes - prepayment penalty | 1,993,000 |
Sub Event - Highcrest Townhomes - gross distribution to Limited Partners | $6,275,000 |
Sub Event - Highcrest Townhomes - per unit distribution to Limited Partners | $6.92 |