SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the Quarterly period ended June 30, 1995 or
Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from to
Commission file number 0-7660
MULTIVEST REAL ESTATE FUND, LTD., SERIES VII
(Exact name of registrant as specified in its charter)
Michigan 38-6285884
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6100 Glades Road, Suite 205
Boca Raton, Florida 33434
(Address of principal executive offices) (Zip Code)
(407) 487-6700
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such report), and (2) has been subject to such filing
requirements for the past 90 days.
yes x no
MULTIVEST REAL ESTATE FUND, LTD. SERIES VII
COMMISSION FILE NUMBER 0-7660
FORM 10-Q
June 30, 1995
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Financial Condition, as of June 30, 1995
and December 31, 1994 (Unaudited).............................3
Statements of Operations, for the three months and the six months
ended June 30, 1995 and 1994 (Unaudited)......................4
Statements of Cash Flows, for the six months ended
June 30, 1995 and 1994 (Unaudited)............................5
Notes to Financial Statements (Unaudited)..........................6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...........................7
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K...................................8
ITEM 1. FINANCIAL STATEMENTS
MULTIVEST REAL ESTATE FUND, LTD., SERIES VII
(a Michigan limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
June 30, December 31,
1995 1994
ASSETS (Unaudited)
Investments in real estate
Land $ 1,900,000 $ -
Building and improvements 2,188,050 -
4,088,050 -
Less: Accumulated depreciation 11,242 -
Net investment in real estate 4,076,808 -
Wrap-around mortgage notes receivable 6,036,524 13,655,214
Less unamortized discount (4,304) (17,215)
Allowance for loss on wrap-around mortgage
note receivable (125,000) (125,000)
Deferred gain on sales of real estate (2,402,387) (7,845,314)
3,504,833 5,667,685
Other assets
Cash 3,928 21,060
Investments, at cost which approximates
market 1,502,888 1,647,000
Accounts receivable 10,955 43,643
Prepaid insurance 13,975 -
Escrow deposits and other assets 20,010 -
Deferred interest receivable - 1,886,866
Total other assets 1,551,756 3,598,569
Total assets $ 9,133,397 $ 9,266,254
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 1,797,197 $ 1,862,729
Accounts payable 15,329 5,401
Accrued liabilities 91,778 918
Accrued liabilities to affiliates 21,605 10,574
Security deposits 51,935 -
Unfunded distribution payable - 552,470
Total liabilities 1,977,844 2,432,092
Partners' capital
Limited Partners, 22,261 units 7,077,147 6,759,014
General Partner, 228 units 78,406 75,148
Total Partners' capital 7,155,553 6,834,162
Total liabilities and
Partners' capital $ 9,133,397 $ 9,266,254
3
MULTIVEST REAL ESTATE FUND, LTD. SERIES VII
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Revenues
Rents and other tenant
charges $ 381,424 $ - $ 496,067 $ -
Interest on wrap-around
mortgage notes receivable 135,530 288,384 271,282 576,969
Other income 71,076 25,457 98,326 40,679
588,030 313,841 865,675 617,648
Expenses
Maintenance, custodial
salaries and related exp. 31,026 - 36,686 -
Real estate management fees 27,123 - 32,891 -
Investment management/real
estate commission 7,260 859,945 14,520 1,062,345
Mortgage servicing fee 3,088 5,478 10,054 12,458
Property taxes 36,714 - 48,952 -
Depreciation and amortization 11,242 - 11,242 -
Insurance 13,980 - 18,640 -
Utilities 112,695 - 135,828 -
Repairs and maintenance 66,042 - 74,602 -
Legal and accounting 15,583 3,543 22,220 16,816
Interest 39,237 45,842 79,178 93,730
Administrative and other 33,513 31,353 59,471 54,626
397,503 946,161 544,284 1,239,975
Income (loss) from
existing assets 190,527 (632,320) 321,391 (622,327)
Income from disposed
properties - 133,229 - 272,196
Income (loss) from
operations 190,527 (499,091) 321,391 (350,131)
Gain on sale of real estate - - - 567,598
Net income (loss) $ 190,527 $ (499,091) $ 321,391 $ 217,466
Allocated to
Limited partners,
22,261 units $ 188,595 $ (494,031) $ 318,133 $ 215,260
General partner, 228 units 1,932 (5,060) 3,258 2,205
$ 190,527 $ (499,091) $ 321,391 $ 217,466
Net income (loss) per
partnership unit based on
22,489 Partnership units
outstanding $ 8.47 $ (22.19) $ 14.29 $ 9.67
4
MULTIVEST REAL ESTATE FUND, LTD. SERIES VII
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months
Ended June 30
1995 1994
Operating Activities
Net income $ 321,391 $ 217,466
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 11,242 -
Gain on sale of property - (567,598)
Amortization of discount on mortgage
note receivable (12,911) (12,911)
Decrease (increase) in accounts receivable 7,355 (2,836)
Increase in prepaid insurance (13,975) -
Increase in escrow deposits and other assets (20,010) -
Increase (decrease) in accounts payable 9,928 (8,914)
Increase in accrued liabilities 90,860 869,713
Increase in accrued liabilities to affiliates 11,031 -
Decrease in unfunded distributions payable (552,470) -
Increase in security deposits 51,935 -
Net cash (used in) provided by
operating activities (95,624) 494,920
Investing Activities
Capital improvement to real estate (18,778) -
Net cash used in investing activities (18,778) -
Financing Activities
Proceeds from sale of property - 600,000
Payments received on wrap-around mortgage
notes receivable 18,690 17,003
Principal payments on mortgage notes payable (65,532) (277,941)
Net cash (used in) provided by
financing activities (46,842) 339,062
(Decrease) increase in cash and
cash equivalents (161,244) 833,982
Cash and cash equivalents - January 1 1,668,060 1,309,688
Cash and cash equivalents - June 30 $ 1,506,816 $ 2,143,670
Non-Cash Activities
Foreclosure on Las Cortes Apartments:
Decrease in wrap-around mortgage
note receivables $(7,600,000) $ -
Decrease in deferred gain on sale 5,442,927 -
Decrease in deferred interest receivable (1,886,866) -
Decrease in interest receivable (25,333) -
Foreclosed property 4,069,272 -
5
MULTIVEST REAL ESTATE FUND, LTD., SERIES VII
(a Michigan limited partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The financial statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results of the interim periods
presented. It is suggested that these financial statements be read in
conjunction with the financial statements and the notes included in the
Partnership's latest annual report on Form 10-K. The results of operations
for interim periods should not be considered as indicative of the results to be
expected for a full year.
Reclassifications
Certain reclassifications have been made in the 1994 financial statements to
conform to the presentation of 1995 results of operations.
6
MULTIVEST REAL ESTATE FUND, LTD. SERIES VII
(a Michigan limited partnership)
June 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Operations of the Partnership are centered on one apartment complex owned by the
Partnership (Las Cortes Apartments, see below) collections on mortgage notes
received upon sale of certain of the Partnership's properties and protection of
the Partnership's mortgage interest in such properties.
The Partnership's total revenues increased $274,189 or 87% for the three months
ended June 30, 1995, and $248,027 or 40% for the six month period, as compared
to the same periods of the prior year. Interest on wrap-around mortgage notes
receivable decreased $152,854 or 53% for the three months, and $305,687 or 53%
for the six months ended June 30, 1995, due to the foreclosure on the wrap-
around mortgage note receivable on Las Cortes Apartments. Rents and other
tenant charges during 1995 represent the rental activity for Las Cortes
Apartments since foreclosure (see below).
Expenses of the Partnership decreased $548,658 or 58% for the quarter ending
June 30, 1995 as compared to the same period of the prior year. There was a
$695,691 or 56% decrease in total expenses for the six months ended June 30,
1995. The decrease for both periods in the investment management/real estate
commission results from the fee due to the General Partner as of December 31,
1994 having been paid. Additional fees will continue to be due the General
Partner as the Partnership continues to receive proceeds. Increases in certain
expenses are a result of the resumption of operations as Las Cortes Apartments.
On January 15, 1995, the owners of Las Cortes Apartments (also known as Lincoln
Terrace Apartments) were required to make a mortgage balloon payment to the
Partnership in the amount of $10,153,932 plus $24,170 in accrued legal expenses
and out of pocket costs from previous defaults and tax escrow payment of
$8,292. No payment was received by the Partnership and a Notice of Default
was sent to the owners of the property on January 24, 1995. On March 7, 1995
the Partnership foreclosed on the mortgage and took title to the property.
The liquidity of the Partnership is dependent upon the timely receipt of income.
There are no other credit facilities currently in place and limited partners
have no obligation to provide additional funds in excess of their initial cash
contributions. In order to protect the Partnership in the event of a reduction
in cash flow, management closely monitors the Partnership's cash position, and,
when necessary, will reserve adequate funds to continue to operate the
Partnership in the foreseeable future. Funds so reserved are generally invested
in short-term investments. The Partnership endeavors to maintain adequate
liquidity on a short-term basis as a result of its cash flow and reserve
policies; however, there can be no assurance of continued collection on the
existing mortgage notes, or the continued performance of the Partnership's
rental property. Unanticipated collection problems on the existing notes,
or a decline in the performance of the Partnership's rental property could have
a negative effect upon the long-term liquidity of the Partnership.
Funds generated from operations and collections on wrap-around mortgage notes
have primarily been utilized to meet debt service obligations and, when
possible, distribute funds to the Partners. There was no distribution of funds
during the six months ending June 30, 1995.
7
MULTIVEST REAL ESTATE FUND, LTD. SERIES VII
(a Michigan limited partnership)
June 30, 1995
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits:
(i) Exhibit 27 - Financial Data Schedule
(b) No report on Form 8-K has been filed during the quarter ended June 30,
1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MULTIVEST REAL ESTATE FUND, LTD.
Series VII, a Michigan Limited
Partnership
(Registrant)
By: MULTIVEST REAL ESTATE, INC.,
a Delaware corporation
Its: Corporate General Partner
RICHARD L. DAVIS
Date: August 14, 1995
Richard L. Davis
President -
Chief Executive Officer
JOHN J. KAMMERER
Date: August 14, 1995
John J. Kammerer
Principal Accounting Officer
8