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 March 31, 1996 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
March 31, 1996
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Financial Condition, as of March 31, 1996
(Unaudited) and December 31, 1995.................................3
Statements of Operations, for the three months
ended March 31, 1996 and 1995 (Unaudited).........................4
Statements of Cash Flows, for the three months ended
March 31, 1996 and 1995 (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
March 31, December 31,
1996 1995
ASSETS (Unaudited)
Investments in real estate
Land $ 1,900,000 $ 1,900,000
Building and improvements 3,422,078 2,986,895
5,322,078 4,886,895
Less: Accumulated depreciation 160,653 125,992
Net investment in real estate 5,161,425 4,760,903
Wrap-around mortgage notes receivable 4,479,694 4,489,845
Deferred gain on sales of real estate (2,402,387) (2,402,387)
2,077,307 2,087,458
Other assets
Cash 91,264 5,270
Investments, at cost which
approximates market 605,150 1,850,930
Accounts receivable 5,387 6,447
Prepaid insurance 29,745 44,867
Escrow and deposits and other assets 20,010 20,010
Total other assets 751,556 1,927,524
Total assets $ 7,990,288 $ 8,775,885
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 1,120,049 $ 1,143,793
Accounts payable 7,051 176,106
Accrued liabilities 64,324 188,591
Accrued liabilities to affiliates 42,782 36,176
Security deposits 52,169 51,785
Total liabilities 1,286,375 1,596,451
Partners' capital
Limited Partners, 22,261 units 6,630,086 7,100,786
General Partners, 228 units 73,827 78,648
Total Partners' capital 6,703,913 7,179,434
Total liabilities and
Partners' capital $ 7,990,288 $ 8,775,885
MULTIVEST REAL ESTATE FUND, LTD., SERIES VII
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1996 1995
Revenues
Rents and other tenant charges $ 381,296 $ 114,642
Interest on wrap-around mortgage
notes receivable 106,835 101,296
Other income 88,892 27,250
577,023 243,188
Expenses
Maintenance, custodial salaries
and related expenses 44,211 5,660
Real estate management fees 22,506 5,768
Investment management/real estate
commission 6,910 7,260
Mortgage servicing fee 2,305 5,589
Property taxes 37,500 12,238
Depreciation 34,661 -
Insurance 12,750 4,660
Utilities 120,498 23,133
Repairs and maintenance 58,542 8,561
Legal and accounting 5,656 6,637
Interest 24,138 26,067
Administrative and other 30,686 25,956
400,363 131,529
Income from existing assets 176,660 111,659
Income from sold property - 19,205
Net income $ 176,660 $ 130,864
Allocated to
Limited partners, 22,261 units $ 174,869 $ 129,537
General partners, 228 units 1,791 1,327
$ 176,660 $ 130,864
Net income per partnership unit
based on 22,489 Partnership
units outstanding $ 7.86 $ 5.82
MULTIVEST REAL ESTATE FUND, LTD., SERIES VII
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
1996 1995
Operating Activities
Net income $ 176,660 $ 130,864
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 34,661 -
Amortization of discount on mortgage
note receivable - (6,455)
Decrease in accounts receivable 1,060 2,615
Decrease (increase) in prepaid insurance 15,122 (27,956)
Increase in escrow deposits
and other assets - (20,010)
(Decrease) in accounts payable (169,055) (734)
(Decrease) increase in accrued liabilities (124,267) 28,004
Increase in accrued liabilities to affiliates 6,606 2,454
Increase in security deposits 384 1,000
Decrease in unfunded distributions payable - (552,470)
Net cash used in operating activities (58,829) (442,688)
Investing Activities
Capital improvement to real estate (435,183) -
Net cash used in investing activities (435,183) -
Financing Activities
Distributions to Partners (652,181) -
Payments received on wrap-around mortgage
note receivable 10,151 9,234
Principal payments on mortgage note payable (23,744) (32,414)
Net cash used in financing activities (665,774) (23,180)
Decrease in cash and cash equivalents (1,159,786) (465,868)
Cash and cash equivalents - January 1 1,856,200 1,668,060
Cash and cash equivalents - March 31 $ 696,414 $ 1,202,192
Non-Cash Activities
Foreclosure on Las Cortes Apartments:
Decrease in wrap-around mortgage note receivable $(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
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 1995 financial statements to
conform to the presentation of 1996 results of operations.
MULTIVEST REAL ESTATE FUND, LTD., SERIES VII
(a Michigan limited partnership)
March 31, 1996
ITEM 2. MANAGEMENT'S DISCUSSIONS 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), collections on a mortgage note received
upon sale of one of the Partnership's properties, and protection of the
Partnership's mortgage interest in such property.
On January 15, 1995, the owners of Las Cortes Apartments (formerly known as
Lincoln Terrace Apartments) were required to make a mortgage balloon payment to
the Partnership in the amount of $10,153,932.24, plus $24,170.71 in accrued
legal expenses and out of pocket costs from previous defaults and a tax escrow
payment of $8,292.15. 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 Partnership's total revenues increased $333,835 or 137% for the three months
ending March 31, 1996 as compared to the same period of the prior year. The
increase in rents and other tenant charges of $266,654 or 233% is due to the
collection of rental revenue at Las Cortes Apartments for the entire first
quarter, while the 1995 amount represents rental activity for a portion of
the month of March 1995, only.
Expenses of the Partnership increased $268,834 or 204% for the quarter ending
March 31, 1996 as compared to the same period of the prior year. Increases in
certain accounts related to the operations at Las Cortes Apartments are due to
the 1996 amounts representing three months rental operations; whereas 1995
represents the month of March, 1995.
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 collections on the
existing mortgage note or the continued performance of the Partnership's rental
property. Unanticipated collection problems on the existing note, or a decline
in 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 the wrap-around mortgage note have primarily been utilized to
meet debt service obligations and, when possible, distribute funds to the
Partners. Funds in excess of Partnership reserves resulted in distributions
totaling $652,181 or $29.00 per partnership unit being paid during the quarter
ended March 31, 1996.
MULTIVEST REAL ESTATE FUND, LTD., SERIES VII
(a Michigan limited partnership)
March 31, 1996
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(b) No report on Form 8-K has been filed during the quarter ended
March 31, 1996.
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
Date: May 14, 1996 RICHARD L. DAVIS
Richard L. Davis
President -
Chief Executive Officer
Date: May 14, 1996 JOHN J. KAMMERER
John J. Kammerer
Principal Accounting Officer