SB Partners 8-K Completion of Acquisition or Disposition of Assets

Exhibit 99.1

1

SB PARTNERS
(a New York limited partnership)
PRO FORMA BALANCE SHEET
As of September 30, 2010
(Unaudited)
	As			Pro Forma			Pro Forma
	originally			Adjustments			Balance
	reported			(See Note 2)			Sheet
Assets:
Investments -
Real estate, at cost
Land	$	1,985,000		$	-		$	1,985,000
Buildings, furnishings and improvements		18,560,518			-			18,560,518
Less - accumulated depreciation		(2,820,902	)		-			(2,820,902	)
		17,724,616			-			17,724,616
Real estate held for sale		19,063,029			(19,063,029	)		-
Investment in Sentinel Omaha, LLC net
of reserve for fair value of $3,068,373		-			-			-
		36,787,645			(19,063,029	)		17,724,616
Other Assets -
Cash and cash equivalents		352,978			12,490,951			12,843,929
Other		105,118			-			105,118
Other asset in discontinued operations		31,045			(31,045	)		-
Total assets	$	37,276,786		$	(6,603,123	)	$	30,673,663
Liabilities:
Mortgage note and unsecured loan payable	$	32,000,000		$	-		$	32,000,000
Mortgage note in discontinued operations		6,509,049			(6,509,049	)
Accounts payable and accrued expenses		172,200			-			172,200
Tenant security deposits		104,032			-			104,032.00
Total liabilities		38,785,281			(6,509,049	)		32,276,232
Partners' Capital:
Limited partner - 7,753 units		(1,489,865	)		(94,062	)		(1,583,927	)
General partner - 1 unit		(18,630	)		(12	)		(18,642	)
Total partners' capital		(1,508,495	)		(94,074	)		(1,602,569	)
Total liabilities and partners' capital	$	37,276,786		$	(6,603,123	)	$	30,673,663

See notes to pro forma consolidated financial statements

2

SB PARTNERS
(a New York limited partnership)
PRO FORMA STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2010
(Unaudited)
	As			Pro Forma			Pro Forma
	originally			Adjustments			Income
	reported			(See Note 2)			Statement
Revenues:
Rental income	$	1,298,778		$	-		$	1,298,778
Other rental income		668,640			-			668,640
Interest on short-term investments and other		0			-			0
Total revenues		1,967,418			-			1,967,418
Expenses:
Real estate operating expenses		334,834			-			334,834
Interest on mortgage notes and unsecured
loan payable		807,749			-			807,749
Depreciation and amortization		369,541			-			369,541
Real estate taxes		451,722			-			451,722
Management fees		651,109			(28,946	)		622,163
Other		134,156			-			134,156
Total expenses		2,749,111			(28,946	)		2,720,165
Loss from operations		(781,693	)		28,946			(752,747	)
Equity in net loss of investment		-			-			-
Loss from continuing operations		(781,693	)		28,946			(752,747	)
Income from discontinued operations		313,522			(313,522	)		-
Net loss		(468,171	)		(284,576	)		(752,747	)
Loss allocated to general partner		(60	)		(37	)		(97	)
Loss allocated to limited partners	$	(468,111	)	$	(284,539	)	$	(752,650	)
Earnings per unit of limited partnership interest (basic and diluted):
Continuing operations	$	(100.82	)	$	3.73		$	(97.09	)
Discontinued operations	$	40.44		$	(40.44	)	$	-
Net Loss per unit of Limited Partnership Interest	$	(60.39	)	$	-		$	(97.09	)
Weighted Average Number of Units of Limited
Partnership Interest Outstanding		7,753			7,753			7,753

See notes to pro forma consolidated financial statements

3

SB PARTNERS
(a New York limited partnership)
PRO FORMA STATEMENT OF OPERATIONS
For the Year Ended December 31, 2009
(Unaudited)
	As			Pro Forma			Pro Forma
	originally			Adjustments			Income
	reported			(See Note 2)			Statement
Revenues:
Rental income	$	3,023,526		$	(1,333,077	)	$	1,690,449
Other rental income		959,854			(68,756	)		891,098
Interest on short-term investments and other		165			-			165
Total revenues		3,983,545			(1,401,833	)		2,581,712
Expenses:
Real estate operating expenses		557,015			(117,163	)		439,852
Interest on mortgage notes and
unsecured loan payable		1,493,958			(396,794	)		1,097,164
Depreciation and amortization		1,001,891			(504,392	)		497,499
Real estate taxes		649,996			-			649,996
Management fees		826,573			(38,595	)		787,978
Other		207,438			245			207,683
Total expenses		4,736,871			(1,056,699	)		3,680,172
Loss from operations		(753,326	)		(345,134	)		(1,098,460	)
Equity in net loss of investment		(18,325,791	)		-			(18,325,791	)
Reserve for value of investment		(4,525,416	)		-			(4,525,416	)
Loss from continuing operations		(23,604,533	)		(345,134	)		(23,949,667	)
Loss from discontinued operations		0			-			0
Net gain on sale of investment in real estate property		0			-			0
Net (loss) income		(23,604,533	)		(345,134	)		(23,949,667	)
(Loss) income allocated to general partner		(3,045	)		(45	)		(3,090	)
(Loss) income allocated to limited partners	$	(23,601,488	)	$	(345,089	)	$	(23,946,577	)
Earnings per unit of limited partnership interest (basic and diluted):
Continuing operations	$	(3,044.57	)	$	(44.52	)	$	(3,089.08	)
Discontinued operations (including gain on sale)	$	-		$	-		$	-
Net (loss) income per unit of Limited Partnership Interest	$	(3,044.57	)	$	(44.52	)	$	(3,089.08	)
Weighted Average Number of Units of Limited
Partnership Interest Outstanding		7,753			7,753			7,753

See notes to pro forma consolidated financial statements

4

SB PARTNERS

(a New York limited partnership)

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(1)           Accounting and Financial Reporting

The consolidated financial statements included herein are unaudited; however, the information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary to a fair presentation of the financial position and results of operations for the year presented.   Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures are adequate to make the information presented not misleading.  It is suggested that these financial statements be read in conjunction with the financial statements an d the notes thereto included in the Registrant's latest annual report on Form 10-K, filed June 10, 2010 and Form 10-Q filed November 19, 2010.

(2)           Pro Forma Adjustments

The consolidated balance sheet as of the last filing date, September 30, 2010, has been restated to reflect the sale of 175 Ambassador Drive and the satisfaction of the secured mortgage note payable, as if the transaction had occurred on such date.  Accordingly, the assets and liabilities of 175 Ambassador Drive have been removed from the historical balance sheet to reflect the sale of the property. Assets removed included real estate held for sale of $19,063,029 and other assets in discontinued operations totaling $31,045. Liabilities removed include mortgage note in discontinued operations totaling $6,509,049.  In addition, the balance of cash has been increased by $12,490,951 to reflect the proceeds from the sale of 175 Ambassador Drive.

The accompanying pro forma consolidated statement of operations for the nine months ended September 30, 2010 has been adjusted to reflect the results of operations of the Registrant as if the sale of 175 Ambassador Drive and satisfaction of the secured mortgage note of 175 Ambassador Drive had been consummated at the beginning of the period.

The income from discontinuing operations of 175 Ambassador Drive has been removed from the consolidated statement of operations for the nine months ended September 30, 2010.  Also, management fees have been reduced to reflect the sale of the property.  In accordance with the rules and regulations regarding the filing of Form 8-K, no gain from the sale of the investment in real estate property is reflected in the pro forma statement of operations.

The accompanying pro forma consolidated statement of operations for the year ended December 31, 2009 has been adjusted to reflect the results of operations of the Registrant as if the sale of 175 Ambassador Drive and satisfaction of the secured mortgage note of 175 Ambassador Drive had been consummated at the beginning of the period.

The income from discontinuing operations of 175 Ambassador Drive has been removed from the consolidated statement of operations for the year ended December 31, 2009.  Also, management fees have been reduced to reflect the sale of the property.  In accordance with the rules and regulations regarding the filing of Form 8-K, no gain from the sale of the investment in real estate property is reflected in the pro forma statement of operations.